The Mexican peso appreciated on Wednesday for the third consecutive day after the release of higher-than-expected local inflation figures, which strengthened expectations that Banco de México will continue to raise its key interest rate.
dollar to peso exchange rate
The domestic currency was trading at 19.9200 per dollar, with a gain of 0.26% against the Reuters reference price on Tuesday, contrary to the weak main performance shown by the rest of the currencies in the region. The Bank of Mexico registered an exchange rate of 20.0031 pesos per dollar at the close of Tuesday.
Mexico's consumer price index accelerated in the first half of August by 8.62% year-on-year, a level not seen since December 2000. Analysts anticipated a rate of 8.52%, according to a Reuters poll.
In the last three sessions, the peso accumulates an advance of 1.14%.
According to an analysis by Grupo Financiero BASE, the appreciation of the peso is mainly due to two factors: .
On the one hand, the prices of raw materials continue to rise, favoring a group of currencies in which those of commodity-producing countries stand out and, on the other hand, the expectation that the Bank of Mexico will continue to raise its interest rate, after inflation in Mexico in the first half of August surprised on the rise.
With information from Reuters.
