The Mexican peso closed this Friday a week of losses against the US dollar. Pressured by fears of high inflation levels, the local currency lost ground against a generally strengthened greenback.
The exchange rate ended the session at 20.5519 units per greenback, compared to the record of 20.3390 units last Friday, with data Bank of Mexico (Banxico): a loss of 21.29 cents or 1.05 percent.
On the day, the peso regained ground moderately compared to 20.6319 at yesterday’s close, after hitting a high of 20.7223 early, which is its worst level since the November 1 high.
The US inflation data published in the week marked the highest year-on-year pressure since November 1990, which strengthened the greenback due to the bets of hikes in advance on the rates of the Federal Reserve.
The Dollar Index (DXY), which compares the greenback against a basket made up of six reference currencies, marked a maximum of 95.26 units this Friday, a ceiling of more than a year four months and gained 0.86% in the week.
“The main concern is inflation, following comments from Federal Reserve Chairman Jerome Powell at the beginning of the month that the bank will not hesitate to act on rates if justified,” explained Grupo Ve por Más.
At the local level, the Bank of Mexico raised its interest rate by 25 basis points on Thursday for the fourth time in a row to 5%, and raised its expectations for inflation at the end of this year. It marked 6.24% in October.