Why Is Mexico’s Peso Outperforming? | Presented by CME Group

Mexican Peso Appreciation Factors - The Mexican peso's appreciation over the past 3 months is due to domestic economic stability, proactive governmental policies, and favorable external conditions [1] - Mexico's GDP has been moving higher and unemployment remains near historic lows, indicating economic stability [1] - Inflation has been ticking lower, nearing the Bank of Mexico's target of 3% [2] - Monetary policy is considered favorable due to ongoing interest rate reductions [2] Trade and Global Relations - Postponements of tariffs in February and August have allowed for continued trade dialogue [3] - Mexico is focusing on increasing internal economic activity and developing global relationships to reduce dependence on US trade [3] - These factors have allowed the peso to outperform most global currencies over the past 3 months [3]