• RECORD: The Mexican peso’s value against the US dollar fell overnight to its lowest mark in three years sliding by as much as 9% affected by the collapse in oil prices and larger market volatility in global markets related to the spread of the coronavirus worldwide.
• LEVEL: In Asian trading, the Mexican peso against the US dollar slid all the way to 22.02 in the early Monday hours but it started to stabilize later to levels around 21.10, according to ICE Data Services. The hit to the Mexican peso was the worst since January 2017.
• IMPROVEMENT: The Mexican peso had become one of the best improving currencies around the world in 2020 after the US, Canada and Mexico agreed in December on a renewed regional trade deal (USMCA) and was preferred among emerging market currencies.
• FORECAST: “Mexico’s lower growth outlook, relative to its peers, suggests that the ongoing macro deterioration should continue, extending the risk of credit-rating downgrades and hampering the currency’s longer-term outlook.”, ING Financial Markets had warned on February 14.
