It appears as if all of Latin America is being sucked into the economic vaccuum created by the United States' economic decline, and Mexico is no exception. A previous competitor to the US Dollar, the Peso shows little chance of catching up now, with a gross contraction of 1.8%, and that number is expected to rise as 2009 continues.
"The steepest decline in Mexico’s peso in 13 years blindsided everyone from UBS AG economists to Gustavo Huitron, the local marketing manager for Mercedes-Benz.
After weakening 20 percent last year, the currency fell to a record low of 14.4484 per dollar today. RBS Greenwich Capital Markets in Greenwich, Connecticut, now predicts another 4.5 percent drop by June 30. The peso’s worst performance since 1995’s so-called Tequila Crisis is being driven by the U.S. recession and falling oil prices, which are cutting Mexican exports and government revenues."
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