The figures bolster the peso by demonstrating strength in the local economy, thereby reducing the likelihood of Banxico needing to cut its interest rate.

The Mexican peso is trading with gains on Wednesday morning. The local currency advances to touch its highest level in over eight years following the release of local labor market figures, which support the idea that interest rates will not continue to decline.

The spot exchange rate is at a level of 16.5241 units per dollar. Compared to 16.6575 units yesterday, at the official close of the Bank of Mexico (Banxico), this represents a gain of 13.34 cents, equivalent to 0.8 percent.

The dollar price operates within a range between a maximum of 16.6840 units and a minimum level of 16.5115 units. The Dollar Index (DXY), from the Intercontinental Exchange, which compares the dollar to a basket of six currencies, is up 0.09% at 104.39 points.

According to data published by the National Institute of Statistics and Geography (Inegi), Mexico’s seasonally adjusted unemployment rate fell to 2.6% in the second month of the year, its lowest level since data began in 2015.

These figures boost the peso by showing strength in the local economy, which in turn reduces the likelihood that Banxico will need to cut its rate. In its past monetary policy decision, the authority lowered the rate by 25 basis points to 11 percent.