Peso appreciates and extends its positive streak after data on inflation in the United States

The Mexican peso appreciated strongly against the American dollar this Friday. The local currency extended its streak of advances after the release of an expected inflation report in the United States, which showed that the pressure continues to decline.

The exchange rate ended the day at the level of 19.3692 units against a record of 19.5810 units yesterday, with official data from the Bank of Mexico (Banxico). The movement meant a gain of 21.18 cents or 1.08 percent for the peso.

The crossing operated in an open range between a maximum of 19.5840 units and a minimum of 19.3535 units. The Dollar Index (DXY), which measures the greenback with a basket of six strong reference currencies, lost 0.11% to 104.32 units at the close.

The US Personal Consumption Expenditure (PCE) price index slowed in November, which added to a fortnightly rise in inflation in Mexico supported an upward trend in the currency related to rate hikes.

A limited flow was maintained on the day before the Christmas weekend. Despite lower volume, the Mexican currency extended its advance and in three days, compared to a close of 19.7827 units on Tuesday, it advances 41.5 cents or 2.09 percent.

jose.rivera@eleconomista.mx