Mexican Currency Tipped to Remain Hefty All Summer Long

The Mexican peso surged last week to approach its strongest level against the dollar in eighteen months.

Later last week, it had reached 10.83 pesos to the dollar, down 10 centavos for the week, and down sharply from a high of 11.61 pesos set late last year.

A number of factors seem to be pushing the currency. Analysts said that Mexico´s high interest rates, induced by an aggressive monetary policy, appeared to be the main factor, while a reduction in political tensions over the past few weeks and the general strength of Latin American currencies have also played a part.