The Mexican peso retreats after reaching a new 8-year high yesterday.
The spot exchange rate stands at a level of 16.3468 units per dollar. Compared to yesterday's closing of 16.3368 units.
The local currency retreats this morning after hitting a new low since August 2015, in a market absorbing local inflation figures.
The Mexican peso retreats against the US dollar on Tuesday morning. The local currency loses ground after appreciating to a new nearly nine-year low, in a market digesting a report on local inflation.
The spot exchange rate stands at a level of 16.3468 units per dollar. Compared to yesterday’s closing of 16.3368 units, according to the official data from the Bank of Mexico (Banxico). The movement represents a loss of only one cent or 0.06 percent.
The dollar price operates within a narrow range with a high of 16.3567 pesos and a low of 16.2559 pesos, its best level since August 2015. The Dollar Index (DXY), which measures the dollar against six reference currencies, falls 0.17% to 103.96.
Mexico’s general inflation accelerated in March to 4.42%, below the 4.50% expected by economists, while the core inflation touched a minimum since 2021, fueling the idea that Banxico will not move its rates in its next decision.
With this information, we expect the Bank of Mexico to keep the key interest rate unchanged in its May monetary policy statement and may consider reducing it again in June. The Mexican currency continues to mark new lows in 2024, surprising analysts and traders, amid several signs of oversold conditions in technical indicators. So far this year, it has gained around 3.70 percent.
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