The Mexican peso closed last week at its best level in almost three years

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The Mexican peso closed this week at its best level in almost three years, ending this Friday at 18.77 units per US dollar, according to the Bank of Mexico (Banxico), the first time it has traded below 19 since 2020.

This is its best close since February 18, 2020, when it ended the day at 18.59, during the last week in which it traded below 19 units so far.

Despite the optimism of the Mexican government for this indicator, “the appreciation of the peso happens along with the weakening of the dollar,” said Gabriela Siller, director of economic analysis at Banco Base, in an analysis shared with the media.

“The dollar lost ground after the US release of consumer confidence from the University of Michigan, which rose from 59.7 points to 64.6 points. The combination of lower inflation and better economic expectations reduces the risk of a US recession. USA,” he said.

The exchange rate milestone comes after Mexico’s peso ended 2022 as the second of only four currencies to appreciate against the US dollar, alongside the Russian ruble, the Brazilian real and the Peruvian sol.