Exchange Rate
Monday, October 6th, 2008I am not a currency trader and am ignorant as to what drives changes in exchange rates, but I do follow the USA dollar/Mexican peso exchange rate. I find curious the recent fairly substantial drop in the relative value of the peso.
When I opended my Mexican bank account in April of 2006 the exchange rate was around $10.7 pesos to $1. USA. The rate crept up to about $11. to $1. in the run up to the July, 2006 Mexican presidential election. My banker at the time told me that the value of the peso would probably increase after the election, a prediction which proved correct. The value of the peso has been generally increasing since, with the exception of a couple of drops in the peso’s value in March and September of 2007, to the point at the beginning of August of this year of a rate of $9.9 pesos to $1. USA dollar.
Since early August the peso has steadily lost value to a rate today of $11.79 pesos to $1. USA.
THE NEXT MORNING: And now this next morning the peso has further declined to $12.17 to $1.
I guess I should note that the decline has little effect on my daily life, other than perhaps an increase in the prices of imported goods. Also it may be a good time for me import dollars to my Mexican bank account, and for those in the USA to vacation in Mexico.
AND THIS AFTERNOON: $12.33 to $1.
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