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pesos and dollarsThe strength of the US dollar ($USD) against the Mexican Peso ($MXN) has been the focus of a great deal of attention over the last year. Plenty of theories have been set forth to explain it, ranging from the cratering of crude oil and other commodity prices to the rhetoric of US Republican President Donald Trump. Conversations about the exchange rate among certain groups on social media exploded last year, while a cursory glance at Google web search trends for “Mexican peso” indicates that over the last 5 years, interest really began growing from 2015 into 2016 with large spikes in April and November of last year. Needless to say, there’s good reason for all the attention the topic has been getting. The exchange rate between the $MXN and the $USD (or other currencies such as the Euro (€EUR)) affects multiple interested parties, from Mexicans both inside and outside of the country to travelers to expats residing in Mexico to multinational corporations and governments looking to do business with Mexico. Why had the $USD/$MXN exchange rate risen so high, and will the dollar continue to stay strong against the peso? Or, will the peso continue to recover as it has been doing recently? In order to answer these questions, we must look at the behavior of both the peso and the dollar separately as well as in relation to each other. It’s important to gain the best possible understanding of the situation, and we’re here to help.