# The paradox of the peso: Mexican currency benefits from weak economy

> Mexican imports of capital goods fell sharply in 2019, reducing domestic demand for dollars. The peso strengthened 3.6% over 2019 as the easing of the trade war and other commercial risks also helped emerging currencies.

- Date: 2020-01-27 · published 2020-01-27T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/55296-the-paradox-of-the-peso-mexican-currency-benefits-from-weak-economy
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weaker Mexican economy supporting the peso lowers import costs in dollar terms for Mexican feed buyers only modestly, while the currency trend signals reduced domestic demand for imported inputs.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/article/uk-mexico-peso/the-paradox-of-the-peso-mexican-currency-benefits-from-weak-economy-idUSKBN1ZQ2FK/

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