Peso goes up, dollar heads south

While the dollar has been struggling to keep its head up lately, Mexico's currency today rose to its highest level in almost five years, according to this post by our Times business blogger-in-arms Tom Petruno.

According to Petruno, fears of inflation south of the border "are boosting the odds that the Mexican central bank will raise interest rates this year to damp price pressures. Higher rates tend to attract global capital, or help hold on to it, which can underpin a country’s currency."

"Banks were quoting 10.39 pesos to the dollar today for large transactions, down from 10.45 on Thursday and down from 10.91 pesos at the end of last year."

In other words, if you're planning a Memorial Weekend getaway to Cabo or TJ, expect a smaller bang for your buck.

While the dollar has been struggling to keep its head up lately, Mexico's currency today rose to its highest level in almost five years, according to this post by our Times business blogger-in-arms Tom Petruno.

According to Petruno, fears of inflation south of the border "are boosting the odds that the Mexican central bank will raise interest rates this year to damp price pressures. Higher rates tend to attract global capital, or help hold on to it, which can underpin a country’s currency."

"Banks were quoting 10.39 pesos to the dollar today for large transactions, down from 10.45 on Thursday and down from 10.91 pesos at the end of last year."

In other words, if you're planning a Memorial Weekend getaway to Cabo or TJ, expect a smaller bang for your buck.

Comments

[sparkey]

The Amero should be unveiled before too much longer. The American dollar and the Canadian dollar are worth almost the same. As soon as the peso is worth the same, the Amero will replace all three to form one nation. There is nothing that can be done about it. It will happen.