6 Jan 2016
USD/MXN hits record highs as oil plummets
FXStreet (Córdoba) - The decline in crude oil and risk aversion boosted USD/MXN to new all-time highs. The pair climbed above 17.415 and rose to 17.478. Ahead of the release of the FOMC minutes, it is testing the highs.
Last week the pair approached record highs but the rally of the US dollar was capped by 17.416. From there pulled back but after finding support at 17.25 (Jan 05 low) it rebounded and since then it has been rising constantly.
The Mexican peso is not the worst performer among emerging market currencies versus the US dollar. The Russian ruble is losing 1.60%, the Colombia peso 1.35% and the South African Rand 1.30%. USD/MXN is up 0.85%.
The decline in crude prices is affecting all currencies from oil producers. The WTI barrel is down by more than 5%, trading below $34.00, closer to 2009 lows.
Last week the pair approached record highs but the rally of the US dollar was capped by 17.416. From there pulled back but after finding support at 17.25 (Jan 05 low) it rebounded and since then it has been rising constantly.
The Mexican peso is not the worst performer among emerging market currencies versus the US dollar. The Russian ruble is losing 1.60%, the Colombia peso 1.35% and the South African Rand 1.30%. USD/MXN is up 0.85%.
The decline in crude prices is affecting all currencies from oil producers. The WTI barrel is down by more than 5%, trading below $34.00, closer to 2009 lows.