The Mexican peso has been relatively stable throughout 2007 and is currently trading around 11. Analysts say the currency could enjoy modest appreciation near term.
“As risk appetite comes back, we could see it trade to 10.90,” de la Fuente speculates.
Coutino adds that recent U.S. rate cuts actually increase the margin in the bullish interest-rate differential between Mexico and the U.S., which should allow strengthening in the peso toward 10.90.
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