The Mexican peso depreciated on Tuesday in the face of a global strengthening of the dollar due to expectations of a more restrictive monetary stance from the US Federal Reserve, in a week marked by a vast agenda of central bank meetings.
Peso to dollar exchange rate
The Mexican peso was trading at 20.0418 units per dollar, with a decline of 0.43% compared to the 19.9546 pesos of the closing price of the Bank of Mexico, on Monday.
"The Mexican peso anticipates moderate losses in a cautious situation with investors waiting for the conclusion of the Fed meeting tomorrow, Wednesday," CI Banco said in an analysis note.
In the morning, Sweden's central bank raised interest rates by one percentage point to 1.75%, a higher-than-expected move, and warned of more to come in the next six months as it seeks to rein in rising inflation.
"The market is also awaiting monetary policy announcements from other central banks between the sessions of September 21 and 22, where most are expected to raise their interest rate to face upside risks to inflation. By raising interest rates, central banks inhibit consumption and investment, limiting economic growth , so episodes of risk aversion could be observed in the financial market.
For the rest of the session, the currency is expected to oscillate in a range of 19.93 to 20.11 per dollar, according to local Banco Base.
With information from Reuters and Bloomberg.
