USD/MXN – Live and Historical Rates
The US dollar/Mexican Peso pair is not a commodity one, nor is it a major pair. The USD is indeed a major currency, while the Mexican Peso is not. The chart above tells us how many Pesos one needs to spend to purchase a USD.
The world’s top reserve currency, the USD is responsible for the starting of the floating trend in the 70s. The perfect illustration of how important the USD is as a reserve currency, is the fact that there are more USDs held outside the country than in it. In addition to its solid reserve status, the USD is also the most traded currency in the world and it is closely tied to a number of commodities, such as gold and oil.
The factors responsible for the strength of the USD are numerous, but the US economy itself is obviously a major part of it all. Some of the most important sectors of the US economy are the energy, commodity and manufacturing sectors, supported by a massive and vibrant financial sector.
The MXN may not be a major currency, but it is indeed the most traded currency in Latin America and the 12th most traded currency in the world. The Peso went through some hard times during the 80s. Following a government default in 1982, the Peso was reintroduced, and since then, its trading volumes have grown steadily. The Mexican economy is a services-based one. Some 70% of the GDP is made up by this sector. Industry and agriculture are indeed dwarfed by it.
When it comes to USD/MXN trading opportunities, the relationship between the two countries is what matters first and utmost, more precisely the trade agreements between the two. US Fed announcements also tend to have a rather big impact on the pair.
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