Exchange Rate

Illustration of Middle East war closing Strait of Hormuz, spiking oil prices over $100/barrel, boosting Mexican oil revenues but depreciating peso and inflating prices.

Middle East war drives up oil prices and impacts Mexican economy

10 Mwezi wa tatu, 2026 Imeripotiwa na AI Picha iliyoundwa na AI

The war between the United States, Israel, and Iran, started on February 28, 2026, has driven oil prices above 100 dollars per barrel, closing the Strait of Hormuz and creating volatility in global markets. In Mexico, this could mean additional oil revenues of 406 billion pesos if the average price holds at 90 dollars for the year. However, the conflict has also depreciated the Mexican peso and accelerated inflation to 4.02 percent in February.

Mexican peso closes stronger amid Middle East de-escalation

The Mexican peso ended the session up 0.15% against the dollar at 17.76 pesos per unit, per Banco de México data. Traders assessed the feasibility of a ceasefire in Iran ahead of Banxico's monetary policy decision on Thursday. Analysts forecast the currency to hold in a 17.65-17.85 pesos per dollar range.

Seoul shares rebound more than 5% on eased Iran tensions

9 Mwezi wa tatu, 2026 Imeripotiwa na AI

South Korean stocks rebounded more than 5% on Tuesday amid eased concerns over the U.S.-Iran conflict. U.S. President Donald Trump's remarks led to a sharp drop in global crude prices, spurring bargain hunting. The Korean won also strengthened significantly against the U.S. dollar.

America

Foreign inflow floods Brazilian stock market due to US instability

Asia

Foreign currency deposits rise for second month to record high amid weak won

Asia

Banks join authorities to stem won's weakness

Bessent says weak won doesn't reflect Korea's strong economic fundamentals

U.S. Treasury Secretary Scott Bessent stated that the recent depreciation of the Korean won does not align with South Korea's strong economic fundamentals. During a meeting this week with Seoul's Finance Minister Koo Yun-cheol, he emphasized that excess volatility in the foreign exchange market is undesirable. The two sides discussed the full implementation of a bilateral trade and investment agreement.

Bank of Korea holds key rate steady amid weak won

14 Mwezi wa kwanza, 2026 Imeripotiwa na AI

South Korea's central bank decided to keep its benchmark interest rate at 2.5 percent during a monetary policy meeting in Seoul on January 15. This marks the fifth consecutive hold since July, driven by a weakened won and inflation concerns that limit further easing. BOK Governor Rhee Chang-yong emphasized a data-driven approach, leaving room for potential rate cuts in the next three months amid high uncertainty.

Mexican Peso Closes at 17.99/USD After Banxico's Latest Rate Cut

Continuing its strong run from last week when it first approached 18 per dollar, the Mexican peso edged up 0.02% to close at 17.99 against the US dollar on December 19, following a 25 basis point cut by the Bank of Mexico. Bank quotes show the dollar at 18.47, with analysts eyeing potential corrections amid rising dollar strength.

Mexican peso flirts with 18 per dollar

13 Mwezi wa kumi na mbili, 2025 Imeripotiwa na AI

The Mexican peso reached levels near 18 pesos per dollar this week, a floor not seen since July 2024, driven by a weak dollar and solid economic fundamentals. Analysts highlight a 15.6 percent appreciation in 2025, though they warn this strength may be temporary due to rate cuts and trade tensions.

Jumatano, 4. Mwezi wa tatu 2026, 20:26:22