Investing.com – The price of the dollar in Mexico took a downward trend today after the release of inflation data for May in the United States. The data for May came slightly below expected, and it will determine the monetary policy decision of the United States Federal Reserve (Fed), which will be announced this Wednesday, June 14.
At 7:40 a.m., Mexico City time, the exchange rate was at 17.26 units, which represents an appreciation of the peso of around 0.15% against the US dollar, although earlier the parity reached 17.23 units, registering a new year-on-year minimum.
“At the opening of the American session, it extends part of the advance established moments after the US inflation report was published and is positioned in 16th place among the currencies of emerging countries that present the highest gains against the dollar”, commented Janneth Quiroz Zamora, deputy director of Economic Analysis at Monex Grupo Financiero Monex.
The appreciation of the national currency occurs after it was announced that inflation in the United States was the lowest since March 2021. This result was lower than the 4.1% forecast and below the 4.9% of the previous reading.
“The confirmation that inflation in the United States shows a clear downward trend, including core inflation, fuels speculation that tomorrow the Fed will pause the cycle of interest rate increases,” said Gabriela Siller Pagaza, Director of Economic and Financial Analysis at Banco Base.
With the performance of the exchange rate shown this morning, with an exchange rate reaching 17.24 spot, “the Mexican peso tries to consolidate itself at a new, best level in the last seven years, in a day marked by the key inflation data May in the United States, very relevant to try to clarify the path that the Fed plans to take with interest rates”, explained Jorge Gordillo Arias, director of Economic and Stock Market Analysis at CIBanco.
Once this data is known, the markets’ attention will be focused on the Fed’s monetary policy announcement, where the markets are betting that the central bank will declare a pause in interest rate hikes, although they do not rule out further increases in interest rates. subsequent meetings.
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[…] depreciation of 0.14% or 2.4 cents. It is currently trading around 17.10 pesos per dollar, with the exchange rate reaching a maximum of 17.1237 and a minimum of 17.0462 pesos per […]
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[…] depreciation of 0.14% or 2.4 cents. It is currently trading around 17.10 pesos per dollar, with the exchange rate reaching a maximum of 17.1237 and a minimum of 17.0462 pesos per […]