The strengthening of the dollar affected the Mexican peso towards the opening of markets this Friday. The report of inflation in the United States, higher than expected, also raised the bets that the Federal Reserve will continue to raise interest rates. However, the dollar’s gains were capped after a slowdown in retail sales was reported.
dollar to peso exchange rate
The exchange rate this Friday was 20.0139 pesos per dollar, a depreciation of 0.16% compared to the closing price on Thursday, of 19.9815 pesos per dollar, according to the Bank of Mexico.
September data in the United States showed that headline inflation is slowing more gradually than expected, while core inflation rose from 6.3% to 6.6%, its highest level since 1982, the analysis of the foreign exchange market pointed out. monex group. This led to higher expectations that the Federal Reserve will continue to aggressively raise interest rates, thus strengthening the dollar.
However, the report on retail sales in the United States revealed that consumption stagnated in September, presenting a zero monthly variation, below market expectations of a 0.2% advance, in its monthly comparison. This dampened the bullish trend of the dollar, giving the Mexican peso a break.
During the session, the exchange rate is expected to trade between 20.05 and 20.22 pesos per dollar , the Base Bank estimated.
The Mexican currency, however, accumulates a weekly advance of 0.10%, according to Reuters estimates.
The market has begun to price in a more aggressive stance by the Federal Reserve, so upward pressures for the US dollar cannot be ruled out, which could take the index to new highs in the second half of October, Banco Base said.
With information from Reuters.
