Experts see a peso at just under 18 to the dollar a year from now
A year from now, the Mexican peso will be trading at just under 18 to the US dollar, according to foreign exchange (FX) experts polled by Reuters. The news agency polled 24 FX specialists between June 26 and July 1, asking them to forecast the USD:MXN rate 12 months from now. The experts polled by Reuters warned that additional interest rate cuts by Banco de México would risk further weakening of the peso. However, Mexico’s central bank has held rates steady recently and has indicated that future cuts are unlikely. (Moisés Pablo / Cuartoscuro.com) The median estimate of the poll respondents was a USD:MXN rate of 17.78, a prediction that implies a slight depreciation of the peso over the next 12 months. According to the Bank of Mexico, the peso closed at just under 17.50 to the dollar on Tuesday. A rate of 17.78 would represent a depreciation of 1.6% for the peso compared to the June 30 closing rate. Reuters reported that “[e]xcept for a brief tumble at the start of 2020...