Latin American currencies show volatility in Mexico, Argentina, and Peru

Currency markets in Latin America are experiencing varied movements. In Mexico, the peso has shown recent volatility, fluctuating around the 18 pesos per dollar mark. Omar Mejía Castelazo, sub-governor of the Banco de México, stated that these adjustments are “healthy” and that markets maintain confidence in the currency due to its high liquidity and flexible exchange rate regime. While the central bank is monitoring the potential impact of peso depreciation on inflation, current movements are being absorbed by the market. Economic forecasts from Citi suggest expectations for the peso to settle near 18.00 per dollar by the end of 2026.

In Argentina, the wholesale official dollar remained stable at $1,520, though the gap with the exchange rate ceiling has reached its highest level in 17 months. This stability follows a strong appreciation of the Brazilian real following recent presidential election results, which may improve Argentina's relative competitiveness.

In Peru, the US dollar saw a slight increase on October 7, with purchase and sale prices at S/ 3.431 and S/ 3.437 respectively, remaining below the monthly highs recorded earlier in October.