The Mexican peso appreciated on Tuesday after news that local inflation accelerated in July more than expected, confirming the prospects that the central bank will raise its key interest rate again this week.
This morning the dollar is sold at 20.2093 pesos, according to data from Bloomberg , this means an appreciation for the Mexican currency of 0.26% compared to Monday's close, recorded by the Bank of Mexico, of 20.2633 pesos per unit.
The National Consumer Price Index stood at 8.15% in July, a level not seen since December 2000, according to figures from the statistics institute, INEGI, while core inflation registered a variation of 7.65%.
"With the foregoing, the expectation is maintained that inflation could reach 8.7% annually at the end of the year (…) And it is estimated that the Bank of Mexico will raise its interest rate by 75 basis points to a level of 8.5% ", indicated the BASE Financial Group.
During the session, the exchange rate is expected to trade between 2.23 and 20.32 pesos per dollar, while the market awaits the inflation data for the United States, which will be released on Wednesday. The expectation is that annual inflation will be lower than the rate of 9.1% seen in June.
