Janneth Quiroz, director of economic and stock market analysis at Monex, said that the positive reaction of the peso helped pierce the support of 17.90 units and increases the probability of reaching the next level of 17.70 pesos.
“We are seeing a positive reaction from the markets and investors where it was not a given that the interest rate would be increased, but the decision was in line with what the markets projected; however, it was feared that there were some strong signals about the possibility of an increase in the December meeting, this without having a strong signal,” said Quiroz.
Regarding expectations regarding the next monetary policy decision of the Bank of Mexico (Banxico), the executives of Grupo Financiero Banorte expect a first cut in the reference interest rate by the Bank of Mexico in May 2024, while they foresee that The peso will remain stable for the remainder of the year.
Regarding the local currency, the general director of Banorte, Marcos Ramírez, pointed out that, despite the recent volatility in the markets, Banorte expects the peso to remain stable for the rest of 2023 with an estimate of 17.90 per dollar by the end of year from its current level of 17.80 units.