Mexican peso falls for the sixth consecutive day; accumulates a 4.5% decline.
The local currency retreated in a market bracing for tomorrow’s Federal Reserve monetary policy decision, following weak local GDP data.
The Mexican peso depreciated against the dollar in Tuesday’s trading. The local currency fell for the sixth consecutive session in a market preparing for the U.S. Federal Reserve’s (Fed) monetary policy decision tomorrow.
The exchange rate ended the session at 18.7555 units. Compared to its close of 18.6204 pesos yesterday, with the official data from the Bank of Mexico (Banxico), this movement represented a decline of 13.51 cents for the local currency, equivalent to 0.73 percent.
The dollar price moved within an open range, with a maximum of 18.8225 units and a minimum of 18.5752. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, declined 0.05% to 104.51 units.
The local currency has now declined for six consecutive days. At its current level, down from a close of 17.9408 units last Monday according to central bank data, the peso has depreciated by 81.47 cents or 4.54 percent.
The Fed will announce its monetary policy decision tomorrow. While the central bank is not expected to adjust interest rates, analysts anticipate that its communication will pave the way for a 25 basis point rate cut at the September meeting.
Employment data released this morning in the United States supported bets that rates will remain stable, as the JOLTs job openings survey showed a marginal decline in June but remained stable despite the slowdown.
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