Peso appreciates after Federal Reserve monetary policy announcement

The Mexican peso advanced against him American dollar this Wednesday. The local currency appreciated on a day in which the Federal Reserve (Fed) of the United States gave its last monetary policy announcement of this 2021.

The exchange rate closed operations at 21,1056 units against a close of 21.2650 units yesterday, with data from Bank of Mexico (Banxico). This meant a loss to the peso of 15.94 cents or 0.75 percent.

The cross traded in a range between a maximum of 21.3640 units and a minimum of 21.0740 units. The Dollar Index (DXY), which measures the greenback against a basket made up of six coins, fell -0.06% to 96.52 units.

The US central bank reported that the economy reached its inflation target, so it will end its pandemic-era bond purchases in March, paving the way for three rate hikes in 2021.

Fed officials forecast inflation in the United States at 2.6% next year, down from 2.2% expected in September. Following the announcement, in line with expectations, the pair moved in favor of the peso.

Investors await the announcement of Banxico at the local level. Analysts predict, due to persistent inflation, that the central bank will raise its rates 25 basis points for the fifth time in a row to 5.25 percent.

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