Oso
Ultra Nomad
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Peso drops
Peso drops 1.2 percent, most in two years
BLOOMBERG NEWS/
ASSOCIATED PRESS
The peso plunged the most in two years amid speculation the central bank will buy dollars to weaken it.
A slide in oil, the country's biggest export, added to the decline and a global rout in currencies versus the U.S. dollar, added to the decline.
"People are unwinding on commodity currencies, and the yield pickup isn't a driving force any more as the dollar gains momentum," said Marc Chandler,
global head of currency strategy at Brown Brothers Harriman. "There's also concern officials may take measures to weaken the peso."
The peso slid 1.4 percent to 10.1567 per dollar from 10.014 on Thursday.
Crude oil prices, at around $115 per barrel on Friday, are close to 8 percent lower versus a week earlier.
This has also led to lower prices for soybeans and copper, eroding Latin America's export revenue.
Colombia's peso led declines in the region. That peso sank 1.8 percent to 1,812 per dollar from 1,780.20.
The dollar soared Friday as concerns about the deteriorating euro zone economy gripped investors and commodities sold off.
The euro fell the most in almost eight years against the dollar as traders pared bets the European Central Bank will raise interest rates as the
economy in the region slows.
The euro sank 2 percent to $1.5010 having touched $1.5004, the lowest level since Feb. 27, from $1.5325. In mid-July the euro had hit a record against
the dollar at $1.6038.
"There's a real capitulation under way," said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut. "In 24 hours it's gone from
$1.55 to $1.50, which is highly unusual. That changes your game plan for the marketplace."
The pound fell below $1.93 for the first time since March 2007 because the Bank of England kept rates at 5 percent on Thursday. It has dropped 2.7
percent this week to $1.9210, its biggest weekly drop in three years.?
All my childhood I wanted to be older. Now I\'m older and this chitn sucks.
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rhintransit
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sign on ISSSTE here in Loreto today...dollar/9 pesos
reality\'s never been of much use out here...
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thebajarunner
Ultra Nomad
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Once the euro/dollar slide heads our way the peso will not be able to sustain its strength.
The issue is not the Mexican economy, it is the relative strength of the dollar.
And 9 to 1 is a ripoff, pure and simple!
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CaboRon
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| Quote: | Originally posted by thebajarunner
Once the euro/dollar slide heads our way the peso will not be able to sustain its strength.
The issue is not the Mexican economy, it is the relative strength of the dollar.
And 9 to 1 is a ripoff, pure and simple! |
I am predicting the peso will nose dive ....
CaboRon
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bacquito
Super Nomad
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What a ride!! Kinda like a roller coaster.
bacquito
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CaboRon
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| Quote: | Originally posted by bacquito
What a ride!! Kinda like a roller coaster. |
Kinda, except the strengeth of the dollar determines our quality of living overseas.
CaboRon
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thebajarunner
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The peso is the tip of the tail of the small dog.
The dollar (whether you like it or not) is the determining factor in peso strength.
Interestingly, in our lifetimes we have seen the dollar stand off the English Pound Sterling, the Frog Franc (that one did not last long), the
Japanese Yen and now in a death battle with the Euro.
Each time old US dollar prevails, now the battle is much more in doubt.
And if we don't solve our balance of payments problems. be it Chinese plasma screens or Saudi oil, we may not see the greenback continue at the top
of the heap.
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joel
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9 to 1? Sounds like what I would get an airport currency exchange!
The usual commission for changing money at a bank is roughly 5% (though they usually don't make it clear that you're paying so much), which would put
the bank exchange rate at roughly 9.6 to the dollar.
Basically, I'm paying an additional commission of 7 to 8% to the Mexican business for the luxury of paying in a foreign currency. Not great, but not
robbery. That's how much AMEX charges their merchants in many non-U.S. countries.
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DENNIS
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| Quote: | Originally posted by rhintransit
sign on ISSSTE here in Loreto today...dollar/9 pesos |
Is that a hospital?
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CaboRon
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| Quote: | Originally posted by DENNIS
| Quote: | Originally posted by rhintransit
sign on ISSSTE here in Loreto today...dollar/9 pesos |
Is that a hospital? |
It's the gov't store .... best prices in town .... for tequilla too !!
CaboRon
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Cypress
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The ATM's will make adjustments. Push-button cash on demand. It all balances out. It's funny, but is it funny money?
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beercan
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hmmmmm
Mexican Pesos to 1 USD (invert,data)
30 days latest (Aug 8)
10.1261 lowest (Aug 5)
9.9166 highest (Jul 1)
10.385
* libs, all about choice until you choose different
* B. Hussein Obama - an Empty Suit for Empty Minds.
* Annoy a liberal - Work hard and be happy!
* Arguing facts & truth to libs is like bringing a warm smile to a gun fight.
* Lets win the War on Terror
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CaboRon
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| Quote: | Originally posted by Cypress
The ATM's will make adjustments. Push-button cash on demand. It all balances out. It's funny, but is it funny money? |
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