The currency, which has been dubbed the "super peso" in some quarters, including by its most prominent cheerleader, President Andres Manuel Lopez Obrador, strengthened by more than 1.3% in morning trading to 16.63 per dollar.
"What's happening with the peso right now is due to weakness in the dollar, but also because of optimism surrounding the Mexican peso," said Banco Base analyst Gabriela Siller.
"And with this international investors keep buying Mexican pesos and it may keep appreciating," she added.
Data pointing to softening U.S. inflation on the one hand and better-than-expected growth data on the other has helped weaken the dollar and boost the peso, which could continue firming to 16.40 to the dollar, Siller said.
Reporting by Anthony Esposito and Aida Pelaez-Fernandez, editing by Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.
Persons:
Andres Manuel Lopez Obrador, Gabriela Siller, Siller, Anthony Esposito, Aida Pelaez, Fernandez, Deepa Babington
Organizations:
MEXICO CITY, greenback, Federal Reserve, Banco Base, JPMorgan, Thomson
Locations:
MEXICO, America, United States