Good dynamics in Mexican Peso by positive economic data.

Thanks to various factors, the national currency performed well on the exchange rate market against the dollar.

The Mexican peso closed Friday trading at 21.63 units per dollar and maintained its good dynamics thanks to several positive economic data known throughout the week.

This result of the Latin American currency is the best at the closure of the interbank market since March 11, when in the first days of the crisis caused by the coronavirus the exchange rate traded at 21.38 units per greenback.

Banco Base's economic-financial analysis coordinator Gabriela Siller emphasized the benefit of the Mexican currency in the face of the expectation that the Federal Reserve will cut its interest rate to negative rates, while the Bank of Mexico seems "more cautious" in cutting the price of money, which now keeps at 5.5 percent.

This generates the idea of a wide rate differential, which can continue to cause capital inflows into Mexico," the specialist said.

Before the outbreak of the pandemic, the Mexican currency was exchanged at around 18.5 units per greenback.

Another important factor in this assessment of peso is "widespread global optimism over the economic reopening of some countries and the rise in oil prices".

The exchange rate continues to have a downward trend," said the economist, who predicted that the Mexican currency could soon reach even the level of 21 pesos per dollar.

"It is expected that in the long term the exchange rate can stabilize at 20.6 pesos per dollar," Siller said, despite warning that there are risks associated with the weakened Mexican economy.