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Superpeso breaks the floor of 17 units per dollar; Mexican currency gains ground to the US currency
MX🏛️ PoliticsCenter9 days ago

Superpeso breaks the floor of 17 units per dollar; Mexican currency gains ground to the US currency

The Mexican peso has continued its appreciation against the US dollar for a fourth consecutive day, breaking through the key support level of 17 units per dollar. According to Bloomberg data, the peso traded at around 16.98 pesos per dollar in wholesale operations, with over 80% of transactions occurring abroad. This marks the first time since June 3, 2024, when the exchange rate fell below 17 after President Claudia Sheinbaum's victory in the elections. The peso has gained 0.9% in four days and 5.7% year-to-date, placing it sixth among the best-performing currencies. Analysts attribute this trend to global weakness in the US dollar due to increased uncertainty in the US economy, along with higher interest rate differentials and demand for emerging market assets. Private-sector consensus predicts a wholesale rate of 17.90 pesos by year-end, with Barclays being the most optimistic at 17 and Banca Mifel the most pessimistic at 19.03.

The Mexican peso has continued its upward trajectory against the US dollar, with experts predicting it could surpass the 17-peso threshold. On Wednesday, the currency reached 17.02 pesos per dollar during morning trading and closed at 17.06 in wholesale operations, according to the latest survey by the Bank for International Settlements. Over 80% of these transactions take place abroad, highlighting the growing international interest in the peso's performance. This marks the best closing level for the peso since May 31, 2024, when it ended below 17 units, as noted by Bloomberg records. The peso gained 0.1% over two consecutive days, accumulating a total increase of 5.3% this year. It now ranks sixth among currencies showing the strongest performance, led by the Colombian peso. At retail, the dollar was sold at 17.49 pesos in Banamex branches, down five cents from the previous day. Economists have pointed to several factors driving the peso’s strength. According to Janneth Quiroz Zamora, director of Economic Analysis, Currency and Stock Market at Monex, the peso is positioned to break through the 17-unit mark due to the global weakening of the dollar and investor expectations regarding the monetary policy direction of the Bank of Mexico (Banxico) and the Federal Reserve (Fed). Similarly, Nadia Montes de Oca, a senior portfolio manager at Franklin Templeton, emphasized that the main driver of current market movements is the expectation surrounding the Fed's interest rate decision. Montes de Oca suggested that if the Fed were to cut rates due to additional inflation data, more capital might flow back into Mexico, potentially pushing the exchange rate lower than 16 pesos. She expects the parity to remain between 17 and 17.50 pesos while uncertainty persists over the Fed’s actions. Conversely, she warned that if the Fed instead raises rates aggressively due to rising inflation concerns, the peso could exceed 18 pesos, depending on the extent of the Fed’s intervention. Private-sector consensus forecasts a wholesale exchange rate of 17.90 pesos by year-end, based on a recent survey conducted by Citi among 35 banks, brokerage firms, and analysis groups. This projection reflects broader optimism about the peso’s potential to continue its appreciation trend. Laura Díaz, an analyst at Banamex, explained that the carry trade and the global weakness of the dollar are key drivers behind the appreciation of emerging-market currencies. The carry trade involves borrowing in one region and investing in another, leveraging interest rate differentials and currency imbalances. Díaz noted that emerging-market currencies have historically reached some of their best levels against the dollar, supported by large interest rate differentials between emerging economies and the United States. The Bank of Mexico maintains its primary interest rate at 6.5%, while the Federal Reserve keeps its range between 3.50% and 3.75% since December last year. Díaz also highlighted that the generalized weakness of the dollar observed since last year has been crucial in explaining the peso’s appreciation and that of other emerging-market currencies. Gabriela Siller, chief economist at Banco Base, echoed these sentiments, forecasting that the peso-dollar parity will cross the 17-unit benchmark this year. She attributed the peso’s gains to the carry trade, reinforcing the view that favorable interest rate conditions and global economic trends are supporting the peso’s rise.

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4 reports

El Universal logoEl UniversalIndependentCenterFactual 98Objective 929 days ago
Superweight reaches 16.98 units to the dollar

The Mexican peso strengthened against the US dollar for the fourth consecutive day, reaching 16.98 pesos per dollar during morning trading, marking its lowest level in over two years. The peso closed at 17.02, its best performance since May 2024, according to Bloomberg data. Analysts attribute this strength to global weakness in the dollar due to increased uncertainty in the U.S. economy, along with higher demand for emerging market assets and favorable interest rate differentials. Experts predict the exchange rate could remain between 16.90 and 17.20 in the coming week, with potential for further appreciation if the dollar continues to weaken. The peso has gained 0.7% in four days and 5.5% in 2026, making it the sixth-best performing currency globally.

Bias read (Center): The article presents economic analysis and expert opinions regarding the peso's performance without overt ideological slant. It cites multiple analysts and institutions (Banamex, Banorte, EBC Financial Group) with balanced perspectives on factors influencing the peso's value, including global dollar

Why factuality (98): This article accurately reports the exchange rate of 16.98 pesos per dollar, the four-day consecutive gain of the peso, and historical reference points such as the 16.26 rate on April 9, 2024. It also cites Bloomberg and analyst Paulina Anciola, aligning closely with the first article while avoiding

Why objectivity (92): The article maintains a neutral tone throughout, presenting facts and expert analysis without evident bias. It includes speculative elements such as estimates from Banorte strategists regarding future exchange rates, but these are framed as predictions rather than definitive statements, preserving o

El Universal logoEl UniversalIndependentCenterFactual 95Objective 909 days ago
Superpeso breaks the floor of 17 units per dollar; Mexican currency gains ground to the US currency

The Mexican peso has continued its appreciation against the US dollar for a fourth consecutive day, breaking through the key support level of 17 units per dollar. According to Bloomberg data, the peso traded at around 16.98 pesos per dollar in wholesale operations, with over 80% of transactions occurring abroad. This marks the first time since June 3, 2024, when the exchange rate fell below 17 after President Claudia Sheinbaum's victory in the elections. The peso has gained 0.9% in four days and 5.7% year-to-date, placing it sixth among the best-performing currencies. Analysts attribute this trend to global weakness in the US dollar due to increased uncertainty in the US economy, along with higher interest rate differentials and demand for emerging market assets. Private-sector consensus predicts a wholesale rate of 17.90 pesos by year-end, with Barclays being the most optimistic at 17 and Banca Mifel the most pessimistic at 19.03.

Bias read (Center): The article presents a balanced analysis of the peso's performance, citing multiple sources including Bloomberg and private-sector forecasts. It includes perspectives from analysts like Paulina Anciola from Banamex, who explain the factors behind the peso's movement. While there is some emphasis on

Why factuality (95): The article provides specific details such as the exchange rate reaching 16.98 pesos per dollar, references to Bloomberg data, and mentions of historical rates from June 2024 and April 2024. These align with the cross-source consensus found in the second article. The only minor discrepancy is the me

Why objectivity (90): The article presents the information in a largely neutral manner, citing analysts like Paulina Anciola and providing contextual factors influencing the peso’s performance. It avoids overtly biased language but includes some promotional content ('Lee también') and quotes from financial experts, which

El Universal logoEl UniversalIndependentCenterFactual 88Objective 8211 days ago
Superweight is shaping up to break the $17 pesos, experts say

The Mexican peso has continued to strengthen against the US dollar, reaching 17.02 pesos per dollar during trading on Wednesday, marking its best close since May 31, 2024. Analysts predict the peso could break below 17 pesos, driven by global dollar weakness and expectations of monetary policy decisions from the Bank of Mexico (Banxico) and the U.S. Federal Reserve (Fed). Experts like Janneth Quiroz Zamora and Nadia Montes de Oca note that if the Fed lowers interest rates, the peso might stabilize around 16 pesos, while a rate hike could push the exchange rate above 18 pesos. Private-sector consensus forecasts the peso to reach 17.90 pesos at the end of the year.

Bias read (Center): The article presents balanced analysis from multiple economic experts, discussing both potential scenarios based on Fed policy decisions. It does not take a clear ideological stance but rather reports on market expectations and expert opinions without overtly favoring any particular political agenda

Why factuality (88): This article corroborates the previous one by reporting the peso’s strong performance, including specific exchange rates and analyst forecasts. It references the Bank for International Settlements and Bloomberg, supporting the factual claims with multiple sources. The data is consistent with the fir

Why objectivity (82): The article maintains a neutral tone, quoting analysts and providing market data without injecting personal opinion. There is minimal promotional content, keeping the focus on factual reporting.

El Universal logoEl UniversalIndependentCenterFactual 85Objective 8011 days ago
The superweight, with its best close since May 2024

The Mexican peso reached its strongest level in over two years, closing at 17.07 pesos per dollar, according to analysts. This appreciation was driven by differences in interest rates and the global weakness of the US dollar. The peso gained 0.4% during trading, marking its best performance since May 31, 2024. At retail, the dollar closed at 17.54 pesos. Analysts like Laura Díaz from Banamex noted that the carry trade and weak dollar have boosted emerging market currencies, while the impact of Japan’s yen intervention has diminished. The Bank of Mexico maintains a key rate of 6.5%, compared to the U.S. Federal Reserve’s range of 3.50%-3.75%. Gabriela Siller from Banco Base expects the peso-dollar parity to break below 17 units this year, attributing the gains to the carry trade.

Bias read (Center): The article presents economic data and expert analysis without overt ideological slant. It reports on currency movements, interest rate differentials, and market strategies such as the carry trade, focusing on factual economic indicators rather than taking a partisan position. Multiple analysts arec

Why factuality (85): The article reports on the Mexican peso reaching its best level since May 2024, citing analyst consensus and data from Bloomberg. It provides specific exchange rates and explains factors like interest rate differentials and dollar weakness. The information aligns with the cross-source consensus, tho

Why objectivity (80): The tone remains neutral, presenting analyst views and market data without overt bias. However, there is some promotional content at the end, which slightly affects objectivity.

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