Value of peso hits lowest point of the year

Exchange rate increases up to 60 cents in one week

Value of peso hits lowest point of the yearThe exchange rate for Mexican pesos reached 13 for a dollar in San Diego. Agencia EFE
The exchange rate for Mexican pesos reached 13 for a dollar in San Diego. Agencia EFE

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SAN YSIDRO – Border residents have been surprised s by the increase of up to 60 cents this week in the exchange rate for the U.S. dollar compared to last week.

“I didn’t expect that it would be so high,” said David Osorio, a Tijuana resident who crossed the border on Thursday to buy a birthday present.

“I arrived thinking that the dollar was trading for 12 pesos, but I was surprised to see the rate about 13,” he said.

In exchange houses in San Ysidro, the dollar was selling for an average of 13.30 pesos, the highest level this year, while at Mexican banks the exchange rate climbed to 13.81 to sell, 13.78 to buy.

The change means that it will take more pesos to buy goods with dollars in the United States.

The increase is due to global markets’ nervousness after the announcement by the U.S. Federal Reserves of a new stimulus plan the boost the economy, and the subsequent drop in European markets, said Andrés Gómez, financial adviser for Grupo Financiero Monex, which specializes in financial analysis and foreign exchange trading.

“The credit ratings of many Italian and French banks suffered, something that undoubtedly affected U.S. banks, as well,” he said.

Gómez said that the current spike in the largest this year, a situation he said “had not been predicted.”

During 2011, the exchange rate for the dollar has averaged 11.30 to 11.46 pesos, Gómez said.

During the week, the Mexico’s Stock Exchange Market recorded a drop of 4.14 per cent, leaving its main indicator, known as the IPC, at 32,611.6 units.

Gómez said that it’s expected that the markets would normalize in the next few days.

alexandra.mendoza@sandiegored.com

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