11 Feb 2016
USD/MXN unstoppable, breaks above 19.00
USD/MXN hit a new record high for the third day in a row. The pair broke above 19.00 and climbed to 19.28. It was trading near the highs, hovering around 19.20, up 1.35% for the day so far.
The Mexican peso started to decline against the US dollar back in November when USD/MXN was trading at 16.50. Since then it has risen 16% on the back of risk aversion across global markets and amid a sharp decline in crude oil prices. Inflation has remain low and below the Bank of Mexico 3% target, despite the depreciation of the peso.
Today the decline in the peso triggered two US dollar auctions at the central bank and were fully covered. But it failed to halt the depreciation of the currency and it did not reduce volatility.
Colombian peso (COP) also at record lows
After moving in ranges during three weeks, between 3,280 and 3,415, USD/COP broke to the upside and hit a new all-time high at 3,437, affected also by the sell-off in equities and in crude oil.
The Mexican peso started to decline against the US dollar back in November when USD/MXN was trading at 16.50. Since then it has risen 16% on the back of risk aversion across global markets and amid a sharp decline in crude oil prices. Inflation has remain low and below the Bank of Mexico 3% target, despite the depreciation of the peso.
Today the decline in the peso triggered two US dollar auctions at the central bank and were fully covered. But it failed to halt the depreciation of the currency and it did not reduce volatility.
Colombian peso (COP) also at record lows
After moving in ranges during three weeks, between 3,280 and 3,415, USD/COP broke to the upside and hit a new all-time high at 3,437, affected also by the sell-off in equities and in crude oil.