Title: Mexican Peso Gains Ground as Investors Await US Inflation Figures
The Mexican peso has continued its upward momentum against the American dollar for the second consecutive day, bolstered by anticipation of the United States‘ inflation figures, which will provide insights into future interest rates.
Market participants are eagerly awaiting the release of the consumer price index data on Wednesday, followed by producer prices data on Thursday. These key economic indicators will play a crucial role in predicting the Federal Reserve’s (Fed) moves on interest rates, especially after recent mixed employment data.
Closing at 17.0605 units per dollar, according to official Bank of Mexico (Banxico) data, the peso registered a gain of 8.39 cents from Friday’s closing rate of 17.1444 units, marking a 0.49 percent increase. Throughout the trading session, the exchange rate fluctuated between a high of 17.1744 units and a low of 17.0294 units against the dollar.
Simultaneously, the Dollar Index (DXY) of the Intercontinental Exchange, which measures the greenback against the other G7 currencies, fell by 0.30% at the close, settling at 101.97 points.
Juan Carlos Cruz Tapia, a professor at the School Banking and Commercial (EBC), outlined that the Mexican peso has started the week on a positive note, gaining ground since Friday’s close. He predicts that this week, the peso may retest the 17-unit threshold and potentially reach new lows below 16.98.
As investors closely monitor these developments, the Mexican peso’s performance highlights its resilience and reinforces the analysts’ predictions for further potential gains in the near future.
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