The Mexican Peso Strengthens Following Local Inflation Data

Investors are closely monitoring the two-day testimony of Federal Reserve Chairman Jerome Powell before the U.S. Senate, seeking clues about the future of the central bank’s monetary policy.

The Mexican Peso is appreciating against the dollar on Tuesday morning. The local currency is gaining ground in a market that is paying close attention to interest rate news, as the Federal Reserve Chairman begins his two-day testimony.

The spot exchange rate stands at 17.9469 pesos per dollar. Compared to yesterday’s close of 17.9894 pesos per dollar, according to the official data from the Bank of Mexico (Banxico), this movement represents a gain of 4.25 centavos, equivalent to 0.24 percent.

The dollar’s price is moving in an open range, with a maximum of 18.0590 pesos and a minimum of 17.9340 pesos. The Intercontinental Exchange’s Dollar Index (DXY), which measures the greenback against a basket of six currencies, rose 0.01% to 105.01 points.


Investors are closely following Jerome Powell’s two-day testimony before the U.S. Senate, looking for hints about the future of monetary policy in the world’s largest economy on a day with no other significant data from the U.S.

Meanwhile, local investors are digesting the June inflation report from Mexico, which, despite showing a significant increase in the overall index, did not alter the expectations that the central bank will cut its main interest rate at its next meeting.

Mexico’s overall inflation accelerated to 4.98% year-on-year in June, with a figure above market expectations. On the other hand, the core index decreased for the seventeenth consecutive month to 4.13%, a level not seen since March 2021.

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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.
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