The Mexican peso depreciated on Thursday while the dollar gained ground on new economic data that raised expectations of a more restrictive monetary policy.
dollar to peso exchange rate
US retail sales unexpectedly rose in August as lower gasoline prices supported spending, showing another sign that the economy could tolerate higher interest rates to fight stubbornly high inflation.
The dollar held near recent highs on Thursday, supported by signs that the Federal Reserve will be even more aggressive next week.
The Mexican peso was trading at 20.0124 units per dollar, with a loss of 0.23% compared to Wednesday's closing price of 19.9653 pesos per dollar, according to the Bank of Mexico.
"The strength of the dollar is supported by increases in interest rates on US Treasury assets," the Base Bank said.
On Wednesday, September 21, the United States Federal Reserve will make its monetary policy announcement, in addition to a conference by Jerome Powell, with the update of its economic projections for growth, inflation, unemployment and interest rates. During the session, the exchange rate is expected to trade between 19.92 and 20.12 pesos per dollar.
With information from Reuters and Bloomberg.
