The price of oil has rebounded significantly from the lows reached earlier in the year on expectations that supply and demand are likely to come into better alignment. Over the same period, the dollar has receded a bit, on net, from its peak in January, though it is still about 15 percent above the level in mid-2014 in inflation-adjusted trade-weighted terms.
In the context of an open capital account and a flexible exchange rate regime, a cautious approach of monetary policy in Mexico has allowed to address a  3  Mian, A., Straub, L., & Sufi, A. (2019). Indebted Demand. Unpublished. 7  series of shocks that led to an environment of uncertainty and higher risk premia.