The super peso is back
As rising interest rates draw capital south of the border, Mexico's currency is trading near a six-year high against the U.S. dollar and is poised to crack the psychological 10-peso-to-the-buck barrier. The peso closed at 10.007 per dollar Wednesday, compared with 10.07 on Tuesday. The peso has gained about 9% against the greenback this year, writes the L.A. Times' Marla Dickerson.
The last time a dollar bought fewer than 10 pesos was October 2002.
The pumped-up peso is making U.S. goods cheaper for Mexican consumers. But it's bad news for American tourists, for whom a visit south of the border is becoming costlier. The rising peso is also cutting into Mexican exporters' profits and making it costlier for U.S. businesses to set up shop in Mexico.
Read on about the super peso here.
-- Deborah Bonello in Mexico City
