Peso goes up, dollar heads south

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While the dollar has been struggling to keep its head up lately, Mexico’s currency today rose to its highest level in almost five years, according to this post by our Times business blogger-in-arms Tom Petruno.

According to Petruno, fears of inflation south of the border ‘are boosting the odds that the Mexican central bank will raise interest rates this year to damp price pressures. Higher rates tend to attract global capital, or help hold on to it, which can underpin a country’s currency.’

‘Banks were quoting 10.39 pesos to the dollar today for large transactions, down from 10.45 on Thursday and down from 10.91 pesos at the end of last year.’

In other words, if you’re planning a Memorial Weekend getaway to Cabo or TJ, expect a smaller bang for your buck.