The Mexican peso continues to depreciate and loses its solid streak.

The peso had recorded eight consecutive sessions of gains until yesterday (Monday).

Gabriel Micillo•Tuesday, March 12, 2024•1 min read

The local currency is losing ground and moving away from its seven-month high following the publication of the February inflation data in the United States.

The Mexican peso is slightly depreciating against the US dollar. The local currency is losing ground and moving away from its seven-month high following the publication of the February inflation data in the United States, which showed data cosnidered as positive.

The spot exchange rate stands at the level of 16.8168 units per dollar. With an official closing of 16.8003 units yesterday, according to data from the Bank of Mexico (Banxico), this represents a decline for the peso of 1.65 cents, equivalent to 0.10 percent.

USD/MXN

The price of the dollar is trading in a narrow range with a high of 16.8558 units and a low of 16.7736 units. The Dollar Index (DXY), which measures the greenback against the basket of the other six G7 currencies, was up 0.22% to 103.10 units.

The report on consumer prices in February in the United States was mixed and raised doubts about when the Federal Reserve (Fed) will begin cutting rates. The CPI rose 0.4% month-on-month and 3.2% year-on-year, largely due to the increase in services.

The peso had recorded eight consecutive sessions of gains until yesterday (Monday). This streak places it below the 17 units per dollar threshold, amid enthusiasm for an expected easing of rates due to the decline in inflation.

The local currency is trimming the strength of previous sessions after the rebound in US CPI inflation. However, the significant increase in Mexico’s industrial production in January acted as a counterweight.

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ABOUT THE AUTHOR See More

Gabriel Micillo

Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.