Peso depreciates on bets on US interest rates

The Mexican peso depreciates against the dollar this Thursday morning. The local currency falls under pressure from a strengthening of the greenback after knowing a series of economic data in USA who support further rate hikes in that country.

The spot exchange rate is located at the level of 19.4110 units per dollar compared to the official closing of 19.3985 units yesterday, with the data of the Bank of Mexico (Banxico). For the Mexican currency this means a decline of 1.25 cents or 0.06 percent.

The crossing operates in a limited range with a maximum of 19.4334 units per dollar and a minimum of 19.3402 units. The Dollar Index (DXY), which measures that currency with a basket made up of six reference currencies, gains 0.65% at the level of 104.93 points.

The strength of the US economy would support the Federal Reserve (Fed) continue to increase the price of money to slow down inflation. Markets fear this could send the world’s largest economy into a recession.

“Yesterday the parity reached a maximum not seen since the beginning of December and increased the probability that the price will operate in the upper part of the range in which it has moved since October 28, between 19.92 pesos and 19.04 pesos,” explained the signature Monex.

On the local side, investors will be watching the minutes of Banxico’s most recent monetary policy meeting, which will be released later today, awaiting further signals on the future of interest rate policy. Of the entity.

jose.rivera@eleconomista.mx