Overview
- The Mexican peso ended near multi‑month highs around 17.12–17.13 per dollar after a choppy session, showing resilience despite a stronger‑than‑expected U.S. ADP jobs print and a slightly firmer dollar index.
- Holiday‑thinned trading on Feb. 16 kept volatility muted, with the peso hovering near 17.16 and the dollar index near 97, as markets positioned for U.S. and Mexican policy signals.
- Argentina’s central bank has purchased about US$2.09 billion so far this year with gross reserves near US$45.16 billion, while the wholesale dollar fell below ARS 1,400 and the real exchange rate hit a seven‑month low.
- High peso yields around the mid‑30s to ~40% effective have supported carry strategies, with dollar returns cited near 16% since the midterms, though some FX purchases have financed Treasury needs rather than fully building reserves.
- Economists caution the carry‑driven calm could prove fragile, with Domingo Cavallo urging prudence, and in Mexico the stronger peso benefits importers and dollar‑debt holders but pressures exporters, tourism and remittance recipients.