Mexican peso is the world's most depreciated currency against the dollar: exchange rate closes at 18.67 units
The Mexican peso depreciated 1.32% against the dollar and the exchange rate closed at 18.67 units, 25 centavos more than the close on Tuesday, October 20, according to Banco de México data. It was the most depreciated currency of the session, according to Gabriela Siller of Banco Base, due to the unwinding of carry trade positions amid a narrowing interest rate differential between Mexico and the United States. The market expects the Fed to raise rates by 25 basis points in December, while the Citi Survey forecasts Banxico will hold its benchmark rate in 2026 and 2027.
In 50 seconds
- The Mexican peso fell 1.32% and the exchange rate closed at 18.67 units, 25 centavos more than the previous day.
- It was the most depreciated currency of the session, followed by the Chilean peso (0.55%), the Colombian peso (0.51%), the Philippine peso (0.45%) and the Hungarian forint (0.38%).
- The market expects a 25 basis point Fed hike in December, which would reduce the appeal of peso positions.
Read the full story at El Financiero
IASummary generated by artificial intelligence from a story by El Financiero. It may contain errors: the original source prevails.
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