Mexican Peso Weakens; Could Be Good for Travel

Money
Photo by jansucko/iStock/Getty Images Plus/Getty Images

The Mexican peso fell again earlier this week, registering a drop of 0.6 percent, increasing the United States dollar exchange rate to 19.19 units, according to data from the Bank of Mexico. At closing the peso was valued at 19.22 units, a level that has not been seen since March.

This is according to Riviera Maya News, which report that the strength of the dollar in the international market was the main factor of the depreciation of the peso. 

It’s also been effected by nervousness over trade talks with the United States

DAILY NEWS & DEALS NEWSLETTER

Like this story? Subscribe to Daily News & Deals!

Featuring breaking news on the latest product launches, deals, sales promotions, and executive appointments. Be sure to sign-up for this free industry daily newsletter.

“The Mexican currency was at its weakest level in the last six months amid high uncertainty surrounding the NAFTA negotiations,” said economic analyst Sergio Luna to Riviera Maya News. 

If NAFTA was terminated, however, rating agency Standard & Poor could reconsider its current credit rating in Mexico.

In just four days, the peso decreased 0.8 percent, according to Indeed, the MSCI Emerging Markets Currency Index.

But a weak peso is good for tourism, at least in Mexico. Reuters reported that last year, the number of visitors rose nine percent while the dollar increased 20 percent against the peso.

Around 35 million international tourists visited Mexico in 2016 compared to 32.1 million in 2015.

On the other hand, tourism numbers from Mexico are down. 

Forbes reported that since June 2016, when Canadian Prime Minister Justin Trudeau announced visa-free travel for Mexicans, tourism from the country has increased 16 percent. Additionally, political issues, namely President Donald Trump’s anti-immigration rhetoric, have caused Mexican travelers to think twice about where they vacation. A weak peso against the US dollar, political determents, and easier access to Canada have resulted in a $1.6 billion loss in tourism spending. 

Related Stories

Travel News: Interjet Launches Flights from LA to Mexico

Two New Hotels in Mexico to Keep on Your Radar

Mexico Tourism Board Unveils "A World of Its Own" Campaign

Tourism Council Rejects $20 Air Tax in Mexico

Suggested Articles:

The airline says that the test flights will gather data on the effect of the 19-hour, nonstop flights on the health and wellbeing of passengers and crew. More…

If you are looking for a last-gasp summer trip or a fall getaway, you can't do better than a mountain town like historic Breckenridge. Learn more here.

Ensemble Travel Group has signed its first-ever membership deal with the American Society of Travel Advisors (ASTA). Get more details here.