Mexican peso advances after local inflation data

The Mexican peso is valued against American dollar this Thursday morning. The local currency gains ground after the publication of biweekly inflation data in Mexico that reinforced the expectation of new increases in interest rates.

The exchange rate spot It is located at the level of 19.5865 units per dollar against an official closing of 19.6468 units yesterday, with the data of the Bank of Mexico (Banxico). That means a gain of 6.03 cents for the currency, equivalent to 0.31 percent.

The crossing operates in an open range between a maximum of 19.6820 units and a minimum of 19.5985 units. The Dollar Index (DXY), which measures the greenback with a basket of six strong reference currencies, advances 0.11% to a level of 104.27 units.

“The peso was favored by the fortnightly inflation rebound in December, as this supports the expectations that Banxico will continue tightening its monetary policy, which will increase the carry trade of the currency”, explained Monex Grupo Financiero.

General inflation in Mexico picked up in the first half of December after six fortnights moderating the pace. The national consumer price index rose 7.77% at the annual rate, more than the 7.46% registered in the second half of November.

For its part, the dollar advances slightly against its main peers after the growth of the Gross Domestic Product (GDP) of the United States in the third quarter was revised upwards to 3.2% annually, according to an estimate by the Department of Commerce.

“The inflation figures allow the peso to advance despite the fact that the data from the United States shows growth in the world’s largest economy and boosts the dollar against other relevant pairs,” Eduardo Ramos, an ATF analyst, explained in a note.

jose.rivera@eleconomista.mx