Mexico's exchange rate is poised to close out its best year ever , as long as it ends below 18 pesos per dollar , investment firm Franklin Templeton said .
"We're having the best year for the peso, with the currency appreciating more than 13.4 percent this year . This has never happened in its entire history, since the exchange rate in Mexico began floating, and even before. The peso's next best performance was in 2012, with an 8.4 percent appreciation . The year isn't over yet, but something terrible would have to happen in the next 26 days," said Ramsé Gutiérrez, co-director of investments at Franklin Templeton Mexico.
He explained that over the past two years, the Mexican peso has been one of the strongest currencies in the world , with a cumulative appreciation against the dollar of more than 25 percent; followed by the Brazilian currency, with 14 percent .
According to data from the Bank of Mexico , the peso appreciated 0.61 percent on Tuesday, to 17.3875 units per spot dollar . This comes after the US labor market finally normalized after COVID-19. The Labor Turnover Survey, or Jolts report, released Tuesday, revealed that the ratio of job openings to the number of unemployed workers fell to 1.34, its lowest reading since August 2021.
