The peso recorded its fourth day in a row with declines, dragged by a global strengthening of the dollar, after the United States Federal Reserve advanced its forecast for an eventual rate hike to 2023.
The currency depreciated 0.7% to 20.24 pesos per dollar, its worst level against the dollar since May 5. In the last four days, the currency accumulates a 2.6% depreciation, according to data from Banxico.
The performance of the currency “was due almost exclusively to expectations about the monetary policy of the United States, which caused a generalized strengthening of the US dollar of 0.72%, the highest advance since September 23, 2020,” said Gabriela Siller, Director of Economic-Financial Analysis of Banco Base.
In its monetary policy announcement, the Fed left its reference rate unchanged and increased its economic projections: for 2021 it adjusted its growth expectation from 6.5% to 7.0%, while it forecasts that inflation will reach 3.4%, above the 2.4% of your previous estimate.
The announcement also shows that 13 of the 18 members of the Federal Open Market Committee (FOMC) think that there could be at least one increase in the interest rate in 2023 and 11 of 18 think that there could be two increases. 25 basis points.
“Surprisingly, the US central bank now anticipates two increases in the funding interest rate for 2023, when in previous estimates they considered that there would be no rate adjustments until after that year,” said Jorge Gordillo, director of analysis at CI Bank.
Before the announcement of the Fed, the stock market also lost. The S & P / BMV IPC index, made up of the shares of the 35 most liquid firms in the market, fell 0.65% to 50,579.10 points.
With information from Reuters.
