Mexican Peso Stable Ahead of Fed Meeting
The Mexican peso began the week with a slight gain in a market gearing up for the first day of the Federal Reserve’s monetary policy meeting.
On Monday, the peso closed virtually unchanged against the dollar. It ended the session at 20.1255 pesos per dollar, compared to 20.1281 pesos on Friday, according to official data from the Bank of Mexico (Banxico). This marginal gain of 0.01% int the USD/MXN amounted to less than a penny.
During the trading session, the dollar fluctuated within a range of 20.2110 pesos at its peak and 20.1014 pesos at its lowest point. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against six major currencies, declined by 0.12% to 106.88 points, according to Intercontinental Exchange data.
Federal Reserve Meeting
The Federal Reserve is set to begin its monetary policy meeting tomorrow, concluding Wednesday with a decision on interest rates. A day later, Mexico’s central bank (Banxico) will announce its final monetary policy decision for 2024.
Investors are closely watching the outcomes of both meetings, scheduled for Wednesday (Fed) and Thursday (Banxico). While a 25-basis-point adjustment is widely anticipated in both cases, surprises may emerge from the accompanying statements.
Analysts also noted that announcements from other central banks, such as the Bank of Japan, will be relevant in the coming days.
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