Since May 2001 when the Mexican peso was $.111 ( 8.97 pesos per dollar) the value of the peso has fallen a little bit but not much. The current rate as of Jan 17 2002, is slightly smaller than the rate of May 2001, the peso in Jan 2002 is worth about $.110, about 9.057 pesos per dollar, so the peso is a bit down but well within the free float range. A sustained rise in the peso, I would imagine, would make the American dollar worth less in Mexico making the things or factors of production more expensive for American companies in Mexico. On the other hand, a rising peso value would make Mexican subsidiary companies sort of wealthier, because their pesos would be worth more in the U.S.If the peso rose extremely in value, the American subsidiaries in Mexico would have to pay more for staffing and production for the reason the American dollar would be worth less as the peso value rises. Overall a rise in the value of the peso would weaken the power of the American dollar, because on exchange we would get less and less pesos for each American dollar traded. In contrast a fall in the value of the peso would strengthen the American dollar making it worth more if exchanged. ...
