Peso falls to 18 to the US dollar as oil, Fed worries weigh on both currencies
The Mexican peso depreciated to 18 to the US dollar on Monday, a weakening of more than 1% compared to Friday and over 6% compared to its strongest position this month. The sharp depreciation on Monday came just weeks after the return of the “super peso” was proclaimed at a time when the peso was trading at below 17 to the greenback. A USD:MXN exchange rate of 18, as was the going rate early Monday afternoon, represents a depreciation of 6.2% for the peso compared to its strongest closing position this month — 16.89 to the greenback on Sept. 4, according to the Bank of Mexico (Banxico). At 3 p.m. Mexico City time, the peso was trading at 17.99 to the US dollar, according to Bloomberg. Banxico’s closing USD:MXN rate, reported daily at 2:10 p.m., was 17.94, a depreciation of 1.3% compared to the closing rate on Friday. The newspaper El Financiero attributed the peso’s decline on Monday to a greater aversion to risk, an increase in oil prices — which rose afte...