SAN DIEGO (Border Report) — The Mexican peso opened the week trading at its strongest point against the dollar in 14 months, according to Banco BASE, a Mexican monetary trading institution.
On Monday, traders were getting 18.36 pesos for every U.S. dollar, which hasn’t happened since July 2024.
Banco BASE says the dollar has weakened over speculation the U.S. Federal Reserve will lower interest rates by as much as a quarter of one percent this Wednesday.
“Part of the dollar’s weakening is due to Donald Trump comment this weekend that he expects a big cut in interest rates, which indicates he is probably pressuring for a cut of up to half a point,” said Gabriela Siller, director of Economic Analysis for Banco BASE. “If we do see a drop of half a point, it will make the dollar even weaker.”
According to Siller, speculation will remain throughout the year as President Trump is expected to continue his push for lower interest rates, which could make the peso to dollar exchange at 18.30 to 1.
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