# Mexico's stronger peso cuts the value of remittances from the US | Reuters

> Mexico's peso has risen more than 14% against the dollar this year, helped by higher central bank rates and nearshoring investment. On Friday it hit a 7.5-year high of 16.63 per dollar, versus about 20.40 a year earlier. The stronger peso lowers the peso value of remittances sent from the US, which hits lower-income households.

- Date: 2023-07-31 · published 2023-07-31T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/35265-mexico-s-stronger-peso-cuts-the-value-of-remittances-from-the-us-reuters
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A stronger peso reduces the purchasing power of Mexican household incomes and makes dollar-priced feed imports cheaper in pesos. The effect on grain and feed prices is limited, so the direct price impact is small.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/mexicos-super-peso-puts-squeeze-us-remittances-2023-07-31/

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