The Mexican peso depreciated almost 1% against the dollar after knowing the , after four days of consecutive rises. The dollar is expected to trade around 20 pesos per unit.
dollar to peso exchange rate
The United States reported a larger-than-expected rise in August consumer prices, a 0.1% monthly rise, dashing hopes that peak inflation had peaked, and cementing chances of a 75 basis point rate hike. by the Federal Reserve next week.
The Mexican peso was trading at 20.0759 units per dollar, with a loss of 0.98% compared to Monday's closing price registered by the Bank of Mexico, of 19.8806. The main reason was the inflation data in the United States, which, although it meant the second month with a slowdown in price increases, was also slightly above market expectations.
"It is worth mentioning that, despite the reaction of the market, inflation was below the 8.5% observed in July and accumulates two consecutive months down. At a monthly rate, inflation was 0.1%. The lowest inflation in August it is the result of the decrease in gasoline prices at a monthly rate of 10.6%, falling for the second consecutive month (…) During the session, the exchange rate is expected to trade between 19.89 and 20.07 pesos per dollar" , said the Base Bank.
With inflation from Reuters and Bloomberg.