Overview of the Mexican Peso’s Performance
The Mexican peso has experienced a marginal appreciation against the US dollar on this Friday morning. Despite fluctuations due to anticipation of improvements in the trade war between China and the United States, the Mexican peso is on track for a positive weekly close.
Current Exchange Rate
The spot exchange rate is currently at 19.5745 pesos per dollar, representing a marginal gain of 0.03% or less than a cent compared to the previous day’s official rate of 19.5809 pesos, as reported by Mexico’s central bank (Banxico). The dollar’s range is between a high of 19.6898 pesos and a low of 19.5631 pesos.
The DXY, a measure of the US dollar’s strength against a basket of six major currencies by the Intercontinental Exchange, has increased by 0.27% to 99.56 units.
Trade War Developments
China announced some tariff exemptions for US imports, raising hopes for a positive resolution in the trade war between the world’s two largest economies. US President Donald Trump expressed his intention to be “very kind” in trade negotiations with China, and some White House officials suggested that tariffs might be reduced to ease tensions.
In an interview with Time magazine, Trump stated that his administration is negotiating with China to reach an agreement and mentioned that Chinese President Xi Jinping called him on Tuesday. However, Beijing has disputed Trump’s interpretation of the situation.
Improved Mexican Economic Activity
On the domestic front, the peso has gained momentum from a better-than-expected economic activity report for February. This data arrives amid investor concerns that Mexico’s economy may have slipped into a technical recession during the first quarter of 2023.
The Indicator of Global Economic Activity (IGAE) in Mexico grew by 1% in February, according to a report released by the National Institute of Statistics and Geography (INEGI) on Friday. On an annual basis, the IGAE decreased by 0.7%. Analysts from Actinver highlighted that these figures suggest the Mexican economy’s performance might be less weak than anticipated.
Key Questions and Answers
- What is the current exchange rate of the Mexican peso against the US dollar? The spot exchange rate is currently at 19.5745 pesos per dollar, representing a marginal gain of 0.03% or less than a cent compared to the previous day’s official rate.
- How have recent developments in the US-China trade war affected the Mexican peso? China’s announcement of tariff exemptions for US imports has raised hopes for a positive resolution in the trade war, supporting the Mexican peso’s marginal appreciation against the US dollar.
- What is the recent economic activity report for Mexico, and how has it impacted the peso? The Indicator of Global Economic Activity (IGAE) in Mexico grew by 1% in February, providing momentum to the peso amid investor concerns about a potential technical recession in the first quarter of 2023.
