Mexico’s peso and Columbian peso rose 0.5% and 0.7%, respectively, against the greenback, tracking higher oil prices as both countries are major exporters of crude.
Oil prices rose by more than $1 a barrel on Monday after top crude exporter Saudi Arabia pledged to cut production by a further 1 million barrels per day (bpd) from July. Mexico’s ruling party comfortably captured a major historic stronghold of the opposition in an election on Sunday, consolidating President Andres Manuel Lopez Obrador’s hold on power ahead of the battle to succeed him next year. “The market looks at Mexican politics as being quite stable now.
The main uncertainty is not about whether the current government remains in power, but about who will really be the person to replace,” Carlos de Sousa said. “I think that would be key for a lot of Mexican asset prices, including the peso.” Meanwhile, Mexico’s consumer confidence index was 44.4 in May, while its gross fixed investment rose 0.5 percent in March from the previous month, the national statistics agency said on Monday, June 5th.
Source; El Financiero