The Mexican rebounded to 20.6 per USD in mid-October, not far from a near 7-month low of 20.90 touched on October 12th, as traders weighed an IMF fiscal policy report and inflation woes. IMF analysts highlighted that Mexico’s public deficit will total 0.1% of 2021 GDP, before switching to a surplus in 2022 and 2023, which contrasts sharply with other emerging economies, forecasts to reach public deficits around 4.8% of GDP this year. Elsewhere, the annual inflation rate in the US inched up to a 13-year high of 5.4%, above market expectations of 5.3%, reinforcing the Federal Reserve's stance to start tapering its asset purchases, which dent the appeal of peso-valued assets.
Historically, the Mexican Peso reached an all time high of 25.78 in April of 2020. Mexican Peso - data, forecasts, historical chart - was last updated on October of 2021.
The Mexican Peso is expected to trade at 20.88 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 21.44 in 12 months time.