The Mexican peso depreciated on Monday as investors guarded the monetary policy decisions of various central banks this week, including the US Federal Reserve, which is likely to announce another sharp rate hike.
Exchange rate from dollar to peso
The Mexican peso was trading at 20.1155 per dollar, with a loss of 0.15% compared to Thursday's closing price of 20.0834 pesos per dollar, according to the Bank of Mexico.
"Greater caution is perceived prior to central bank decisions this week due to their potential effect on global growth," Grupo Financiero Banorte said in a research note.
At the local level, participants' eyes are on the release of inflation figures on Thursday, which will offer additional clues about the next rate increases by the Bank of Mexico.
"The depreciation of the peso is the result of a strengthening of the US dollar, with the weighted index advancing 0.30%, in anticipation of the Federal Reserve's monetary policy announcement, scheduled for September 21 at 1:00 p.m. Basic Bank.
For the rest of the week, the peso is expected to oscillate in a range of 19.80 to 20.45, according to the firm CI Banco.