Title: Mexican Peso Experiences Slight Setbacks Against US Dollar Following Recent Gains
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The Mexican peso began Friday with slight setbacks after five consecutive days of appreciating against the US dollar. Bloomberg data reveals that the peso is currently trading at 16.8533 units, representing a depreciation of 0.08 percent or 1.42 cents compared to its previous closing.
Janneth Quiroz, the director of economic analysis at Monex, highlighted that the peso continues to hover below the psychological threshold of 17 units, as investors eagerly await more information on upcoming actions by the Federal Reserve.
Meanwhile, the dollar is experiencing limited gains in the wake of hitting a 15-month low. It is heading for its largest weekly decline since November, spurred by weaker US inflation data earlier this week, leading investors to speculate that the Federal Reserve may soon conclude its interest rate hikes.
The dollar index (dxy), which measures the US currency’s strength against six major currencies, has risen by 0.10 percent to reach 99.87 units. This follows four sessions of losses for the index. Additionally, the Bloomberg dollar index (bbdxy) is operating at a level of 1,202.29 integers, showing a 0.16 percent increase.
According to Citibanamex, the US dollar is currently being sold at 17.32 pesos in bank windows. In the money market, the 10-year Mbono yield in Mexico stands at 9.00 percent, while the yield of the US 10-year bond stands at 3.78 percent.
Among the currencies that have shown the most gains, the Malaysian ringgit leads with a 1.23 percent increase, followed by the South Korean won (0.68 percent), the Taiwanese dollar (0.62 percent), the Brazilian real (0.39 percent), the Colombian peso (0.17 percent), the Chinese yuan (0.12 percent), and the Israeli shekel (0.11 percent).
As the trading day progresses, market participants will closely monitor the performance of the Mexican peso and its interactions with the US dollar, keeping a keen eye on any further developments that may impact currency markets.
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