Wednesday, October 12, 2011

Peso's weakens ahead of Holiday shopping season


After months of gaining against the dollar, the peso is in a weakening trend.

Between April and September, the peso weakened 22.6 percent. This month, it's moderated somewhat, but international banking uncertainty could keep the peso weaker than it had been before this summer's fluctuation in the peso-dollar exchange rate.

The weaker peso exchange rate affects Mexicans living in and visiting San Antonio and South Texas because it reduces their purchasing power — and that could play a large role in the upcoming holiday shopping season.

“Any small incremental change toward a devaluation of the peso can make people nervous,” said Robert Barnett, a partner in the San Antonio-based law firm Cacheaux, Cavazos & Newton, which specializes in U.S.-Mexico legal matters.

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