Mexican peso falls for the fourth straight session following unexpected inflation figures.
The local currency lost ground, affected by a strengthening dollar and bets on a local interest rate cut following unexpected inflation figures.
The Mexican peso fell for the fourth consecutive session on Thursday. The local currency lost ground as the dollar strengthened and market speculation grew regarding a potential cut in local interest rates after the release of surprising inflation data.
The exchange rate closed the day at 19.4791 pesos per dollar, down from 19.3433 the previous day, according to data from the Bank of Mexico (Banxico). This movement represented a decline of 13.58 cents, equivalent to 0.70%.
The dollar traded within a wide range, reaching a high of 19.5358 pesos and a low of 19.2781. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, rose 0.49% to 101.53 points.
Economic data from the United States continue to signal strength, prompting investors to boost the dollar despite expectations of U.S. interest rate cuts. In Mexico, inflation unexpectedly slowed.
The National Institute of Statistics and Geography (INEGI) reported that consumer prices fell by 0.03% in the first half of August, surprising the market, which had anticipated a rise of 0.13%. On an annual basis, inflation slowed to 5.16%.
The peso extended its decline after the release of local inflation and GDP figures, which fell short of expectations, reinforcing the outlook for Banxico to cut rates in upcoming meetings.
Meanwhile, Mexico’s economy grew by 0.2% in the second quarter, as initially estimated, driven by gains in manufacturing and services, which offset a decline in agricultural activities.
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