The Mexican peso retreats in the face of bets on the Fed’s interest rate decisions.

The currency lost ground after economic data in the United States emerged, supporting the notion that the Fed won’t cut rates soon.

The Mexican peso depreciated against the dollar in Thursday’s session. The local currency retreated after economic data emerged in the United States, supporting the belief that the Federal Reserve won’t soon cut rates.

The exchange rate ended the session at 17.2136 units per dollar. Against yesterday’s official close of 17.0700 pesos, according to data from the Bank of Mexico (Banxico), this resulted in a loss for the peso of 14.36 cents, equivalent to 0.84 percent.

The dollar price operated in an open range, reaching a maximum of 17.3892 pesos and a minimum of 17.0151 pesos. The Intercontinental Exchange’s Dollar Index (DXY), which measures the dollar against six currencies, was down 0.29% to 105.55 units.

US economic growth slowed more than expected in the first quarter, at 1.6% compared to an expectation of 2.4%; additionally, the weekly figure for unemployment support claims decreased by 5,000 to 207,000 filings.

The US GDP data, combined with the most recent inflation figures, create uncertainty, suggesting that there won’t be a Federal Reserve rate cut before September, in an environment of strength in employment. The market overreacts negatively to both references: lower economic growth with higher inflation, somewhat undermining the idea of achieving the much-desired soft economic landing.