With the dollar downhaul progressing as of late, a new currency is gaining momentum against the USD. The Mexican peso is currently riding a bullish wave, amping up its game against the US dollar. The peso is gaining strength against the American dollar noting a significant hike in its exchange price, trading at 16.329785 pesos at press time.
Mexican peso supremacy seems to be stirred by the newest developments in the political domain of Mexico. The nation is undergoing a dynamic shift, with a looming presidential election hovering and fueling hopes for a positive change in the economic strata and narrative.
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Major Factors Influencing the Mexican Peso vs the US Dollar
A variety of different factors drive the Mexican peso. Its value is largely dependent on the pace at which the nation’s economy is functioning. Similarly, the country’s central bank policy also influences the currency’s price and valuation. The current market momentum is supporting the MXN, primarily stirred by the upcoming presidential election activities that are fueling the peso hike.
On Sunday, two Mexican women candidates running for the presidential race, Claudia Sheinbaum and Morena and Xochitl Galve, took the political domain by storm by delivering an enigmatic speech for the civilians to take note of.
In the earlier speech, Sheinbaum discussed measures she would be taking to boost the nation’s economic prospects. On the other hand, Galvez shared her vision, adding that she’s keen on embedding blockchain-centric measures into the economic infrastructure to boost the Mexican economy.
Apart from the presidential election debate, the economic strata of Mexico are undergoing a gradual change. The nation will soon release its CPI metrics, retail sales numbers, and industrial production data. The anticipation concerning such metrics may also be playing a pivotal role in boosting the value of the Mexican peso.
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Why is the Peso Rising?
The anticipation and potential surrounding the release of new CPI metrics seem to fuel the peso’s value. Similarly, the nation’s Treasury yields are expected to rise further, helping the currency gain further strength.
Additionally, per the CME FedEx Tool, expectations concerning the Federal Reserve cutting rates three times a year seem to be dwindling. This is also fueling the rise of the Mexican peso, bolstering its value against the USD.