Investing.com – He is aiming to end a week of depreciation today, which would end the positive streak the currency had been on for the past month. Although today the currency appreciates slightly 0.04%, in the last five days the exchange rate rose 1.5%, going from 19.80 pesos per dollar to 20.11 pesos per dollar.
A more aggressive monetary policy by the United States Federal Reserve strengthened the dollar, which had an impact on the price of the Mexican peso.
“The dollar started the day with gains, in line with the rebound it has presented during the last week, supported by more ‘hawkish’ comments from several members of the Fed’s FOMC, who have expressed their support for accelerating the rate of increases in rate to curb rapid inflation,” said Janneth Quiroz, deputy director of economic analysis at Monex Grupo Financiero.
However, the expert pointed out that the Mexican peso is among the currencies that show lower losses against the dollar today.
Quiroz explains that the recent data from , which reflects that the upward trend in prices continues, increases the chances that the Bank of Mexico will maintain the current interest rate hike policy, which favors the Mexican peso.
“Our currency has been supported by the expectation that high inflation will cause the reference interest rate to continue to rise at a rate of at least 50 points,” the expert said.