The Mexican peso appreciated on Wednesday after sinking to its lowest level in eight weeks, in a market with an eye on intervention by Federal Reserve Chairman Jerome Powell and other US central bank officials later in the day.
Exchange rate from dollar to peso
The Mexican currency was trading at 20.3130 pesos per dollar, with a gain of 0.23% against the Reuters reference price on Tuesday. Shortly before, the peso weakened 1% to 20.5750 units, a level not seen since August 3.
"Among traders, concern dominates over forecasts of further interest rate hikes in the United States and other large economies to control high inflation, which aggravates fears of a global recession," CI Bank said in a note. analysis.
Powell is later scheduled to deliver a speech at the opening of a banking conference hosted by the St. Louis regional central bank. St. Louis Fed President James Bullard and other high-level Fed officials will address the event later in the day.
For the rest of the session, the peso is expected to oscillate in a range of 20.32 to 20.54 pesos per dollar, according to analysts at the local Banco Base.