The exchange rate has climbed back to the ceiling of 20 pesos per dollar due to the greater strength of the US currency, while the markets are watching forecasts on who will win the elections in the United States: Donald Trump or Kamala Harris. The depreciation of the Mexican peso is 0.13 percent against the dollar, which has led to the exchange rate being positioned at 19.97 units, 3 cents more than at the close on Tuesday, October 22.
Janneth Quiroz, director of economic and exchange rate analysis at Monex, pointed out: "The exchange rate has surpassed the initial resistances above the psychological level of 20 units, affected by weak local economic data, which align with the recent reduction in the IMF's economic growth projections for 2024." The International Monetary Fund has cut its growth estimates for Mexico to 1.5 percent in 2024 and 1.3 percent for 2025.
At bank counters, the dollar is sold at 20.42 pesos and bought at 19.35 units for each green bill, according to Citibanamex. The dollar index (dxy), which measures the strength of the dollar against a basket of major currencies, rises 0.34 percent to 104.42 points, while the Bloomberg dollar index (bbdxy) is up 0.29 percent to 1261.59 units.
As for the money market, the yield on the 10-year Mbono in Mexico stands at a rate of 10.47 percent, while in the United States, the yield on the 10-year bond reaches 4.25 percent. Other currencies that also decline against the dollar are the Japanese yen by 1.24 percent, the South African rand by 1.10 percent, the Israeli shekel by 0.79 percent, the Norwegian krone by 0.76 percent, and the Hungarian forint by 0.74 percent.
