The peso’s strong performance came after a better-than-expected US jobs report, which allayed fears of a recession and boosted currencies in emerging countries, particularly in nations linked to raw materials.
“In this sense, a change of language in relation to new increases in the rate stands out. The Fed has become dependent on economic data and will evaluate future decisions based on available information on inflation and the general behavior of financial markets,” OctaFX analysts said.
OctaFX analysts also commented that while the Federal Reserve’s decision has been perceived as “dovish”, the Fed reiterated that inflation is high and the job market strong. As for the balance sheet reduction, the FOMC decided to continue as planned.
“From a technical perspective, the exchange rate is in a consolidation stage at levels between 17.85 and 18.00 pesos per dollar. Due to the expectation that the Fed has probably completed the cycle of rate increases, the peso could continue gaining ground in the short term, hitting new lows for the year,” said Gabriela Siller, director of economic analysis at Banco Base.