Reuters latest forecast: Mexican Peso faces depreciation pressure against the US dollar this year

Recent Reuters survey data shows that the two major Latin American currencies will face depreciation pressure over the next 12 months. Among them, the Mexican peso’s depreciation against the US dollar is more pronounced, expected to fall from 18.55 in January to 18.38, a fluctuation of 6.3%. The survey also includes forecasts for the Chilean peso’s movement.

Continued Depreciation Pressure on the Mexican Peso

The latest tracking by Reuters indicates a clear expectation of depreciation for the Mexican peso against the dollar over the next 12 months. Compared to the January survey result of 18.55, the new forecast target is 18.38, implying a depreciation of 6.3%. This forecast reflects market caution regarding the trend of this major emerging market currency.

Chilean Peso Faces Mild Depreciation

In contrast, the Chilean peso’s downward momentum against the dollar is relatively mild. Data from Jin10 shows that the Chilean peso is expected to decline by 1.8% over the same 12-month period, from 900.0 in January to 876.90. Although the depreciation is less severe than that of the Mexican peso, it still indicates a general pressure on emerging market currencies in the region.

Latin American Currency Outlook Comparison

Comparing the depreciation expectations of the two currencies reveals that the Mexican peso faces approximately 3.5 times the depreciation pressure of the Chilean peso. This difference reflects variations in economic fundamentals, monetary policies, and foreign investment flows between the two countries. Investors should closely monitor the performance of these major Latin American currencies over the coming year.