LatinNews Daily - 21 September 2020

*The Mexican peso appreciated by 1.03% against the US dollar to trade at M$21.07/US$1 on 18 September. This was the highest exchange rate for the peso recorded since March, when its value against the dollar started depreciating in line with other emerging currencies and as the coronavirus (Covid-19) pandemic took hold in the Americas. The appreciation of the peso has sparked optimism that the markets are regaining confidence in the Mexican economy and its incipient economic recovery. Gabriela Siller, an economist at bank Banco Base, attributed the rise in the value of the peso to the “accommodative monetary policy of the US Federal Reserve, as well as to optimism and higher interest rates in Mexico”. Siller explained that as Federal Reserve continues to maintain interest rates low investors will continue to be attracted by the higher returns offer by Mexican assets.

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