Exchange rate
The exchange rate was quoted this morning at 16.93 pesos per dollar, a gain of 0.78% compared to the closing of Wednesday registered by the Bank of Mexico.
“The appreciation occurs in line with the weakening of the US dollar of 0.40%, according to the weighted index, before the publication of US inflation for the month of July,” said Banco Base.
Due to a mathematical effect, inflation in July rose for the first time after 12 months of decline. However, it continues to show signs of slowing down. At the monthly rate, inflation stood at 0.17%, below the expectation of 0.22%, for example.
These data fuel speculation that the US Fed (Federal Reserve) will not raise interest rates in its next monetary policy announcement on September 20, which weakens the dollar.
“With today’s report, the bets of investors in the rate futures market are consolidated, that the Fed would leave its interest rate unchanged at the September meeting. The initial reaction of the financial markets is positive, especially all those at higher risk,” said the firm CI Banco, in an analysis note.
At the local level, the market is awaiting the central bank’s monetary policy decision, which is widely expected to keep the benchmark interest rate at its current record high of 11.25%, where it has been since March.
Earlier, Monex estimated a weekly gain of 1.8% for the Mexican peso and a decline of 1.6% compared to the end of July.
During the session, the exchange rate is expected to trade between 16.89 and 17.09 pesos per dollar, according to Banco Base.
With information from Reuters