Monday, June 24, 2024

Analyst who predicted stronger peso is still bullish on the currency

One of just two analysts who predicted the peso would strengthen after the July 1 election is still bullish, Bloomberg reported today.

Ilya Gofshteyn at Standard Chartered Bank in New York forecast the currency would strengthen past 19 to the dollar during this quarter.

It has gained more than 5% since the election to about 18.85 per dollar, the best performance among more than 40 currencies tracked by Bloomberg.

Now it will reach 18 to the dollar by the end of the year, predicts Gofshteyn, who expects a new NAFTA agreement by early next year.

A United States trade war with China would be good for Mexico as companies move their purchases to Mexico to avoid tariffs on Chinese goods. Barriers for Chinese goods mean an advantage for Mexican producers, the analyst said.

Source: Bloomberg (en)

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