USD/MXN Forex Trading
The US and Mexico have tight economic and political connections, making the USD/MXN currency pair engaging to watch. Interested? Start trading USD/MXN with FXOpen today!
USDMXN Live Charts
Use our USD/MXN live charts to get the most up-to-date insight into the recent performance of this pair and other currency pairs used in forex trading. It can help you make informed decisions at home or on the go – no matter if you use the TickTrader desktop platform, web terminal, or mobile app. Our real-time FX USD/MXN chart includes the very latest price, historical data, and technical analysis tools to help guide your next trade.
What Is USD/MXN Trading?
In forex, USD/MXN is the currency pair of the Mexican peso and the US dollar. Its rate informs
traders
about the number of pesos that are required to buy a single US dollar. US dollar/Mexican peso is an
exotic currency pair, as the peso is an emerging market currency.
It is one of the most frequently traded currency pairs, and one of the reasons for the high level of
interest in the US dollar to Mexican peso trading is the potentially high yields.
The US dollar has been the official currency of the United States since the late 18th century.
Initially, it was defined under a bimetallic standard of fine silver and gold, but this standard was
abandoned in the early 20th century. Today, its value is determined by the interplay of supply and
demand. The USD is the most traded currency in the world, thanks to its status as the world’s
leading
safe-haven asset and the liquidity of the US financial markets.
MXN stands for the Mexican peso, the official currency of Mexico. The Mexican government introduced
a
new peso, called the “nuevo peso,” in 1993 to replace the original peso after a period of
hyperinflation
and currency devaluation caused by the 1970s oil crisis and Mexico’s default on external debt. The
old
peso was replaced at a rate of 1:1000. As with other currencies of emerging markets, the peso’s
value
varies based on global sentiment and geopolitical factors.
USD/MXN Historical Performance
An exotic currency pair can generate exciting trading opportunities on the global forex
market. What’s more, FXOpen offers competitive spreads and excellent liquidity, boosting
attractiveness in forex US dollar/Mexican peso trading. Here’s a short history of the pair’s
rates.
After trading in a narrow range of 9-11.5 since 2000, the USD/MXN rate skyrocketed during
the crisis in 2008 so that in the first quarter of 2009, it was above 15. After a
correction, a new uptrend started in 2013, and the price broke above 25 in 2020. Significant
spikes in the exchange rate make the pair attractive for those traders who prefer trading on
high volatility.
Major Factors That Affect the USD/MXN Pair
The two countries discussed have close economic and political ties, as the US and Mexico are
neighbours. So, decisions made by governments regarding immigration, border control, and taxes
impact the USD/MXN rate.
Inflation is one of the main drivers of the US dollar’s value, along with the change in interest
rates, level of capital flow, the change in amounts of currency in circulation, and the reserves
held by banks.
The value of the peso is heavily influenced by the country’s exports – Mexico is a major
exporter of automobiles, electronics, and petroleum. Additionally, remittances from Mexicans
living abroad, particularly in the US, affect the economy and impact the strength of the
currency. The peso is also impacted by inflation and various global events and trends, for
example, fluctuations in oil prices.
Are you interested in this pair? You can start trading it with FXOpen right away!