Mexico Peso Rallies on Record Remittance Data
Mexican peso gained 1.2% on record remittance inflows.
The Mexican peso surged 1.2% to 16.85 per dollar on Monday, posting its strongest single-session gain in three weeks. The rally was driven by record remittance inflows of $6.2 billion in March, as Mexican workers abroad continued to send historically high sums home amid a robust US labor market.
Brent crude's 2.3% climb to $85.40 per barrel provided additional tailwinds for Latin America's second-largest economy, which relies on oil exports for approximately 15% of government revenue. The energy sector rebound came as OPEC+ signaled it would maintain production discipline through the summer months.
The IPC index rose 0.8% in Mexico City trading, with financial and energy stocks leading gains. Grupo Financiero Banorte jumped 2.1% while Pemex-linked companies rallied on the oil price recovery. Foreign investors have increased allocations to Mexican fixed income by $3.8 billion year-to-date, attracted by real yields above 6% and relative political stability compared to other emerging markets.
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