Mexican Peso's Near-Term Strength To Give Way To Longer-Term Depreciation

• The Mexican peso (MXN) will appreciate against the US dollar over the near term, driven by optimism around the global economy and its carry trade value.
• Over the longer term, the agency expects the currency will weaken against the US dollar, weighed down by relatively weak economic fundamentals and more dovish monetary policy.
• Fitch Solutions forecasts an average exchange rate of MXN20.70/USD in 2021, down from previous forecast of MXN21.65/USD, with the exchange rate ending the year at MXN21.30/USD.

(Source: Fitch Solutions)