Forex: USD/MXN Up, with the Peso Losing Ground
iNVEZZ (Mexico City) On November 13, the USD/MXN pair was up 0.13 percent at 13:45 GMT, according to FXstreet data. In addition, Bloomberg reports that the previous day the peso lost 0.1 percent to 13.2113 per dollar at 4 p.m. in Mexico City, the weakest level on a closing basis since August 30. Although Mexico’s peso has recently been cited as one of the most attractive emerging market currencies for traders due to the less dovish monetary stance of Mexico’s central bank, the currency has not managed to escape the omnipresent Eurozone woes.
**Factors Pushing the USD/MXN Pair Up**
The peso fell for a fourth consecutive day, its longest stretch of losses in a month, with the Eurozone crisis expected to weigh on markets for Mexico’s exports. Bloomberg quotes Eduardo Rodriguez, currency trader at Casa de Bolsa Finamex SAB, as saying that compared with other currencies, the Mexican peso “is a bit more susceptible because positions in its favour were very large.” In addition, economic concerns are pushing haven currencies such as the greenback higher, providing further support for the USD/MXN pair.
“The peso is really a very good indicator of the risk-on, risk-off mood that markets have been displaying lately,” notes Guillermo Ortiz, chairman of Grupo Financiero Banorte SAB, as quoted by Bloomberg.