MEXICO CITY, July 10 (Xinhua) -- The Mexican peso, one of the emerging economy's most traded currencies, on Tuesday closed below 19 pesos per dollar for the first time in over two months.
The Mexican currency closed the day for sale at a wholesale interbank value of 18.9275 pesos, its best level since registering 18.9485 pesos on May 2, according to data from Mexico's central bank (Banxico).
The currency hit a 17-month maximum on June 14 of 20.8290 pesos per dollar during the uncertainty of the presidential elections that took place on July 1.
During the day's trading on Tuesday, the peso-dollar parity reached a minimum of 18.9275 and a maximum of 19.1325 pesos to the dollar, according to Banxico data.
Gabriela Siller, director of economic-financial analysis at Base bank, said that the appreciation of the peso was due to increased demand, following expectations that it could continue to appreciate in the next few months.
"Even so, everything will depend on the resumption of North American Free Trade Agreement (NAFTA) renegotiations," said Siller in a report to clients.
The peso has gained ground after the triumph of Andres Manuel Lopez Obrador, leader of left-of-center National Regeneration Movement (Morena), who has recently demonstrated good relationships with business leaders.
The value of the peso also went up after it was announced that Lopez Obrador would meet U.S. officials on Friday, with potential for further appreciation if positive news about NAFTA emerges after the meeting, Siller suggested.
The NAFTA negotiating teams had hoped to reach an "agreement in principle" by the beginning of May, but negotiations became mired due to the disagreement between Mexico and Canada over the demands made by the United States over changes to the agreement.
