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By KELIN DILLON

On Monday, April 8, the Mexican peso reached an international exchange rate of 16.31 pesos per one wholesale U.S. dollar, the currency’s strongest performance against the dollar since October 2015.

This marks a .68 percent appreciation of the peso since trading closed on Friday, said data from Bloomberg, making the Mexican peso one of the top four global currencies in terms of growing value against the dollar over the weekend.

According to Banco Base Director of Economic Analysis Gabriela Siller, the increasing strength of the peso comes as remittances sent from the U.S. to Mexico continue surging, export levels remain strong and foreign investment rises throughout the country.

Siller also pointed to the differences between U.S. and Mexican interest rates, as well as expectations for the expansion of nearshoring opportunities in Mexico, as reasons behind the peso’s favorable position against the dollar.

Director of Analysis at Grupo Financiero Monex Janneth Quiroz went on to note that the U.S. Federal Reserve’s conservative stance on slashing interest rates likewise contributed to the weakening of the dollar.

“The surprisingly strong U.S. jobs report dampened bets on possible early interest rate cuts by the Federal Reserve,” said Quiroz.

Despite the current strength of the peso, the Bank of Mexico (Banxico) predicts the peso-to-dollar exchange rate will rise above 18 to 1 by the end of the calendar year.