The Mexican Peso Drops Ahead of Banxico Minutes Release

Earlier, it was reported that Mexico’s inflation in the first half of May rose to 4.78 percent. Regarding the economy, it grew by 0.3% in the first quarter, surpassing the preliminary estimate of 0.2%, according to data from Inegi.

The Mexican peso is depreciating slightly this Thursday. The local currency is retreating after a brief boost that temporarily pushed it into positive territory, influenced by local inflation and GDP figures, while awaiting the minutes from the Bank of Mexico (Banxico) meeting.

The spot exchange rate stands at 16.6940 pesos per dollar, compared to an official closing rate of 16.6740 pesos yesterday. This movement, in light of the Banxico data, results in a loss of 2 cents for the peso, equivalent to a 0.12 percent decline.

USD/MXN

The dollar is trading in a narrow range, with a maximum of 16.6925 pesos and a minimum of 16.6219 pesos. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six major currencies, is down 0.24% at 104.68 points.

Now, traders are preparing for the release of the minutes from Banxico’s most recent monetary policy meeting, where the reference rate was kept at 11%, near its historic high. The next decision is scheduled for June 27. The disinflationary process could continue to be a challenge for the Bank of Mexico, which is why the expectation of an interest rate cut at the next meeting remains low.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments