1 Jul 2015
USD/MXN hits record highs
FXStreet (Córdoba) - The Mexican peso continued to slide against the US dollar and reached a fresh record low. USD/MXN climbed to 15.807, hitting an all-time high. The pair later pulled back modestly and it was about to end at 15.78.
The pair was rising for the fourth day in a row as greenback strengthened in the region amid risk aversion and a decline in commodities. The WTI crude oil barrel ended today at the lowest since late April.
Many factors
Risk aversion, weak demand and a decline in exports continues to affect expectations in Mexico. The June Mexican PMI showed today the slowest improvement in business conditions since July 2014. “The latest upturn in overall manufacturing conditions was the weakest since July 2014, reflecting a slower pace of output expansion and softer new business growth. However, there were widespread reports from survey respondents that positive business expectations for the year ahead continued to boost capital investment and staff hiring across the manufacturing sector in June”, said Tim Moore, senior economist at Markit and author of the PMI report.
In the US, data today pointed toward a solid labor market while number from the manufacturing sector were mix. Tomorrow’s official employment numbers could increase speculations about a rate hike by the Federal Reserve in September and weaken further the Mexican peso.
The pair was rising for the fourth day in a row as greenback strengthened in the region amid risk aversion and a decline in commodities. The WTI crude oil barrel ended today at the lowest since late April.
Many factors
Risk aversion, weak demand and a decline in exports continues to affect expectations in Mexico. The June Mexican PMI showed today the slowest improvement in business conditions since July 2014. “The latest upturn in overall manufacturing conditions was the weakest since July 2014, reflecting a slower pace of output expansion and softer new business growth. However, there were widespread reports from survey respondents that positive business expectations for the year ahead continued to boost capital investment and staff hiring across the manufacturing sector in June”, said Tim Moore, senior economist at Markit and author of the PMI report.
In the US, data today pointed toward a solid labor market while number from the manufacturing sector were mix. Tomorrow’s official employment numbers could increase speculations about a rate hike by the Federal Reserve in September and weaken further the Mexican peso.