# Mexico peso rally to lose steam this year on lower rate spreads | Reuters

> A Reuters poll of 25 currency strategists sees the Mexican peso losing steam in 2024 as Banxico shifts toward less restrictive policy. The median forecast is 18 per dollar at year-end, about 5.4% weaker than the roughly 17 level seen on January 3.

- Date: 2024-01-05 · published 2024-01-05T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/32327-mexico-peso-rally-to-lose-steam-this-year-on-lower-rate-spreads-reuters
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weaker peso raises the local-currency cost of US corn and soybean meal imports for Mexican feed buyers, which can lift their landed prices. Lower rate spreads are the mechanism behind the expected depreciation.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/mexico-peso-rally-lose-steam-this-year-lower-rate-spreads-2024-01-05/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.