Mexican peso ends stable after Banxico minutes and U.S. inflation data
he exchange rate ended at 19.4939 pesos per dollar, compared to 19.4902 pesos the previous day.
After a negative start to the day, the local currency reversed its decline and ended unchanged in a session marked by U.S. inflation data and the release of Banxico minutes.
The Mexican peso closed nearly flat on Thursday. Despite starting the day on a downtrend, the currency managed to recover and finished the session without significant changes, driven by U.S. inflation data and minutes from Mexico’s central bank, Banxico.
The exchange rate ended at 19.4939 pesos per dollar, compared to 19.4902 pesos the previous day, according to Banxico data. This represented a marginal depreciation of 0.02% for the local currency—less than one cent.
The dollar traded within a range of 19.6210 pesos at its highest and 19.4177 at its lowest. The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, fell 0.07% to 102.86 units.
Investors were analyzing U.S. inflation data that exceeded analysts’ expectations but still pointed to a moderating trend. The consumer price index (CPI) rose 0.2% in September and 2.4% year-over-year.
These figures were higher than the consensus forecast of 0.1% monthly and 2.3% annually, but slightly below the previous month’s readings of 0.2% and 2.5% for August. This contrast left traders uncertain about the Federal Reserve’s next moves regarding interest rates. The cooling of U.S. inflation lowered expectations of medium-term returns on government assets, sending mixed signals that positioned the peso at 19.49.
Later, U.S. Federal Reserve officials weighed in, with some favoring further rate cuts, while one suggested holding rates steady at the November meeting might be appropriate.
On the domestic front, the market digested Banxico’s minutes from its September policy meeting, where the central bank lowered interest rates by 25 basis points. The bank signaled it remains open to further rate cuts as inflation continues to ease.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals