**Mexican Peso Hits 20.55 Per Dollar, Leading Global Depreciation**
The Mexican peso experienced a significant drop as the week began on November 11, 2024. Opening the session at around 20.55 pesos per US dollar, the currency depreciated by 37.5 cents. During the trading day, the exchange rate fluctuated between a low of 20.12 and a high of 20.57 pesos per dollar. According to Gabriela Siller Pagaza, Director of Economic Analysis at BASE Financial Group, the Mexican peso was the most depreciated currency worldwide, decreasing by 1.84% that day.
A report from a British news agency indicated that the peso was trading at 20.58 units, reflecting a significant decline of 2% from the reference price of Friday, November 8, 2024. This decline followed a turbulent week influenced by the US presidential elections, which resulted in Donald Trump’s victory. Market concerns were further amplified by the potential strengthening of Trump’s party in Congress.
Domestically, recent data showed a boost in industrial activity for September and an increase in consumer confidence in October, reaching the highest level since 2001. These statistics are among the last the market will review before the upcoming monetary policy decision by the Bank of Mexico. The central bank is expected to mirror the US Federal Reserve’s recent interest rate cuts during its announcement on Thursday.
Investors are also closely monitoring the government’s budget proposal for the following year. President Claudia Sheinbaum faces the challenge of reducing a significant fiscal deficit, an issue that has previously raised alarms among credit rating agencies.
**Secondary Article: Impact of US Politics on Mexican Economy: Peso and Beyond**
The recent political developments in the United States, particularly the election of Donald Trump and the strengthened position of his political party in Congress, have had noticeable repercussions on the Mexican economy, starting with the currency markets. The Mexican peso’s decline can be partially attributed to these geopolitical shifts and the resultant investor anxiety about future economic relations between the two nations.
The strengthening of the Republican Party in the US Congress poses questions about potential changes in trade policies that could impact Mexico, considering the close economic ties shared between the two countries. This uncertainty often leads to market volatility as investors attempt to anticipate and adjust to policy changes.
Furthermore, experts are paying close attention to Mexico’s fiscal policies and budgetary allocations under the current administration. Analysts forecast that any perceived inability to manage fiscal deficits or introduce effective economic reforms may lead to further depreciation of the peso. The stability of the Mexican economy remains contingent on domestic strategies and international relations, particularly with its northern neighbor.
Stay tuned to TJGringo.com for continuous updates on these developments and their implications on the region’s economy.