- Mexican peso has one of the worst days in history after plunging more than 4% versus the US dollar.
- Panic continues to drive price action across financial markets.
The USD/MXN jumped earlier today to 24.11, hitting a new record high. Then it stabilized and it has been moving in a range between 24.10 and 23.60, holding to most of its daily gains. The collapse in equity markets, rising US yield and the 20% slide in crude oil pushed USD/MXN to the upside.
The demand for the greenback in Mexico remains strong. After a 4.5% rally, the correction of USD/MXN has been relatively small and limited. The pair is about to post a record close. The rally of the recent days, brick back the memory of the 1994 Tequila crisis.
The Mexican peso is among the worst performers over the last thirty days. Some analysts argue MXN is the proxy for emerging markets so it usually suffers most. Other also point to how the Mexican government is handling the situation. Mexican yields jumped on Wednesday. The 10-year rose to 8.30%, the highest level in a year.
USD/MXN rose almost 30% in a one-month period while USD/RUB gained 27% and USD/COP 22.80%, the biggest gainers. On Wednesday, the worst was the Russian ruble with a 7.2% rally in USD/RUB, including a break above 80.00.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.