- Mexican peso rises on Friday versus US dollar amid risk appetite.
- South African rand ends the week as the best emerging market performer.
The USD/MXN climbed earlier on Friday to 22.83, and then turned to the downside, on the back of a weaker US dollar and amid risk appetite. It bottomed at 22.47, the lowest since Tuesday.
Despite Friday’s rally, the Mexican peso is still down for the week but far from the lows. The USD/MXN continues to trade between 22.20 and 22.90, without a clear direction.
The consolidation mode in USD/MXN remains in place for now. If Wall Street can run higher, then there is scope for a slide under 22.00 but if risk aversion emerges, a test of 22.90 could leave the cross vulnerable for a test of the next resistance at 23.20.
EM: ZAR is the best performer
Among emerging market currencies, the South African rand (ZAR) is the best performer over the week. The USD/ZAR is about to post the third weekly decline in a row, after falling below 17.00.
On the flip side, the Indian rupee and the Russian ruble were the biggest losers. USD/INR peaked on Friday at 75.34 before pulling back to 75.18. USD/RUB hit on Tuesday at 72.29, the strongest level since mid-May and then started to retreat; it is about to end the week hovering slightly below 71.00.