The Mexican peso will benefit from the relocation of Chinese companies to the north of the country that seek to maintain proximity to the United States. This process known as nearshoring will increase the amount of investment in Mexico, according to the Deputy Director of Analysis at Monex.

One of the main elements that would favor the Mexican currency is investment. The strategist explained that this item has increased; however, it has not yet materialized.

The Mexican peso is likely to continue to set new highs on the back of comments from Fed members. Federal Reserve Vicepresident Lael Brainard said she favors a 50 points reduction in the rate hike at the next meeting in December.

The Mexican peso profited as a result, according to Bloomberg data, becoming the currency with the best return in the area and the second best among emerging countries. This increased investors' appetite for risk and led them to skip safe-haven securities like the dollar index. 

The strength of Mexico in terms of its economy underlies in the responsible economic, financial, and commercial policies, which aims to strengthen the domestic market. Mexico’s economic development strategy includes the strengthening of consumption in effect to social programs and greater financial inclusion, promoting private investment in strategic sectors, increasing public investment, increasing trading relations with other countries for the reconstruction of global value chain.