Mexican peso falls to 17.77 per dollar, worst week since March
WHAT HAPPENED
The peso closed near 17.77 per dollar, with a weekly decline of 3.05%, the worst since March. It has accumulated four sessions of losses and is at its weakest level since April.
WHY IT MATTERS
Banxico maintained its rate at 6.50%, while the Fed continued to lower its rate. As the advantage of investing in pesos decreases, some money seeks dollars. Concerns about low growth and Mexico's public accounts also weigh in.
AND FOR YOUR PORTFOLIO
An expense of 500 dollars went from about 8,600 to 8,885 pesos in a week. Flights, electronics, medicines, and imported supplies become more expensive. Exporters and families receiving remittances get more pesos for each dollar.
💬 TELL IT LIKE THIS
“When the peso loses value, imports cost more, but every dollar sent or sold yields more pesos.”