The depreciation of the peso is also due to the strengthening of the US dollar by 0.69% according to the weighted index, also rising for the third consecutive session and accumulating an advance of 1.1% in that period.
“Banxico’s statement indicates a disinflationary process underway, although it acknowledges a complicated and uncertain inflationary outlook with potential upward risks. At the moment, the peso-dollar is trading volatile around the 17.70 – 17.75 zone, with dollar buyers American attentive to the psychological barrier of 18.00 units”, indicated the analysts of OctaFX.
On the other hand, the market speculates that the Fed could make another rate hike on June 14. This morning Dallas Fed President Lorie Logan said that inflation remains at a very high level and that she sees no reason to pause the raising cycle.
In addition, the market is optimistic about the possibility of an agreement to raise the debt ceiling in the United States. Since this Wednesday, the president of the United States, Joe Biden, mentioned that he was confident that an agreement would be reached to avoid defaulting on debt payments.