The Mexican peso entered the session little changed and slightly appreciated on Monday as investors continued to digest a speech last week by US Federal Reserve chief Jerome Powell that was described by analysts as restrictive.
dollar to peso exchange rate
The Mexican peso was trading at 19.9935 per dollar, gaining 0.11% against the Reuters benchmark price on Friday. However, data from Bloomberg recorded an exchange rate of 20.0117 pesos per dollar, which indicates a depreciation of 0.15% compared to the close of Friday of the Bank of Mexico.
“After Powell’s words, the market gives a 67% chance that the US central bank will raise its funding rate by 75 basis points at its September meeting,” CI Bank said in a report.
The official said Friday that the world’s largest economy will need a tight monetary policy “for some time” before inflation is under control, which will mean slower growth, a weaker labor market and “some pain” for homes and businesses.
At the local level, participants’ eyes are on the Bank of Mexico’s quarterly report that will be released on Wednesday, in search of an update on the authority’s outlook for inflation and economic growth.
“In the foreign exchange market, most currencies lose ground against the dollar, given the expectation that the Federal Reserve will continue to adopt a restrictive monetary stance to deal with inflationary pressures,” the Base Bank said.
For the rest of the day, the currency is expected to oscillate in a range of 19.93 to 20.10 per dollar, according to the firm Banco Base.
With information from Reuters.
