The Mexican peso depreciates in response to the February inflation data

The local currency loses ground on the second day of the Fed chairman’s testimony, following the release of a February inflation report that was lower than expected.

The Mexican peso retreats on Thursday. The local currency edges lower on the second day of Jerome Powell’s testimony, chairman of the Federal Reserve, following the release of a February inflation report that was better than expected.

The spot exchange rate stands at 16.9032 units per dollar. Compared to a close of 16.8911 units yesterday, according to the official data from the Bank of Mexico (Banxico), the change represents a loss of 1.21 cents for the peso, with a variation of 0.07 percent.

The price of the dollar remains within a narrow range, reaching a high of 16.9048 units and a low of 16.8488 units.

The Dollar Index (DXY), from the Intercontinental Exchange, which measures the USD against six reference currencies, is down 0.15% at 103.21 points.

Federal Reserve Chairman Jerome Powell stated yesterday before the U.S. Congress that the interest rate is at its peak for this restrictive period, but the authority is not so sure about the inflation trend to begin reducing it.

Today, investors will continue to pay attention to Powell’s testimony before the Senate Banking Committee. While the Fed chairman has already outlined his stance, any hints about his future monetary decisions will be considered by the markets.

In economic figures, the number of Americans applying for unemployment benefits last week remained unchanged at 217,000, while claims from two weeks ago were revised upward from 215,000 to 217,000.

On the local front, this morning, the National Institute of Statistics and Geography (Inegi) reported that general inflation moderated to 4.40% in February, more than anticipated by analysts.

The core index dropped to 4.64%, reaching a low not seen since June 2021.