Mexican peso declines
The Mexican peso has fallen 0.5% against the US dollar in today's trading as investors hedge their appetite for risk amid an uncertain economic environment. The peso is particularly sensitive to fluctuations in commodities, as oil has fallen 38% in the past year.
The Mexican economy has been hammered by recession, with swine flu, hurricanes and a significant drop in commodities all conspiring to weaken currency exchange rates for the peso. The budget deficit for 2009 is expected to reach over 3% of GDP, rising from 2.1% the previous year. The Standard & Poors has warned that Mexico must work to find new sources of income and has lowered the countries credit rating to BBB+, the third lowest rating for investments.
Currency exchange rates for the Mexican peso are currently trading at USD0.0733, GBP0.0451 and EUR0.0515.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.