UPDATE 1-Mexican peso near eight-year high, again breaks 17 per dollar barrier
The currency, which has been dubbed the “super peso” in some quarters, including by its most prominent cheerleader, President Andres Manuel Lopez Obrador, firmed to 16.80 per greenback before paring back some of its gains.
“The Mexican currency was favored by the accelerated decline in U.S. inflation,” analysts at Mexican brokerage Monex said.
Mexico’s peso briefly broke the 17 peso dollar barrier last week, but had lost some ground until Wednesday’s gains.
Some analysts have warned that a prolonged peso run could eventually be
more harmful than beneficial
to Mexico’s economy because it makes Mexican exports more expensive and deflates the value of remittances from U.S. senders.