USDMXN Live Chart, Exchange Rate & Analysis | Trade USDMXN

Interesting facts about the USDMXN (US Dollar to Mexican Peso)

The Mexican peso is the official currency only in Mexico. However, it can be accepted as a means of payment in some border areas of the US, Guatemala, and Belize.

Although the USD to MXN pair is not popular among investors because it suffers enormous volatility, it doesn't prevent the Mexican peso from being one of the top-5 currencies by liquidity.

The USD to MXN pair is widely used by carry trade traders. The carry trade strategy involves borrowing money in countries with low interest rate policies and investing it in currencies with higher interest rates. It means that Forex traders go short (sell) the US dollar and go long (buy) the Mexican peso. However, traders should be careful and close positions when the US dollar skyrockets against the Mexican peso.

The peso was originally derived from the Spanish currency used in Mexico, which continued to be used after Mexico gained independence from Spain in 1821. The peso was a benchmark for North American states in the late 18th century. The first centavo coins, equaling one-hundredth of a Peso, were minted in 1863. The country introduced the Nuevo Peso that equaled 1,000 Mexican Pesos because of the years of inflation and debt defaults caused by the oil crisis of the 1970s.

The US dollar can be accepted officially and unofficially in almost every country around the globe. It is legal tender in the USA, Ecuador, Micronesia, El Salvador, the Marshall Islands, Palau, East Timor, and Zimbabwe. As the US dollar is used worldwide, it's subject to counterfeit. Counterfeit US dollars are often detected because they look better than genuine bills.

Although the US dollar is one of the world's reserve currencies and one of the safe-haven assets, the USD/MXN rate is highly volatile. The Mexican economic instability and large price movements don't make investors put their funds in domestic currency.

The best trading time for USD/MXN is North American trading session, from 15:00 to 00:00 (GMT+3, indicated in LiteFinance trading platform).