Fluctuations in oil prices and its effects on the USD-MXN exchange rate

Author

Alejandro Velasco, The University of Texas Rio Grande Valley

Date of Award

2016

Document Type

Thesis

First Advisor

Dr. Sergio Garcia

Second Advisor

Dr. Maroula Khraiche

Third Advisor

Dr. Eduardo Saucedo

Abstract

Do oil prices affect exchange rates? There is a strong correlation between the changes in oil prices and the fluctuations of the exchange rates. What is the effect of the oil prices on US Dollar- Mexican Peso exchange rate? The US Dollar depreciates whenever the oil prices rise, meaning that the oil prices have an impact on exchange rates (Amano, 1998). Financial analysts and oil industry expertise have seen how prices started to decrease in 2014, and this caused uncertainty affecting other markets and consequently exchange rates. The intention of this research is to demonstrate the correlation that exists between oil prices and the exchange rate in Mexico in respect with the US dollar.

Comments

Copyright 2016 Alejandro Velasco. All Rights Reserved.

Recommended Citation

Velasco, A. (2016). Fluctuations in oil prices and its effects on the USD-MXN exchange rate [Undergraduate honors thesis]. Scholarworks @ UTRGV. https://scholarworks.utrgv.edu/honors/2