Peso appreciates after inflation data from the United States

The Mexican peso appreciates against the US dollar on Wednesday morning. The local currency gains ground slightly after the market reported a US inflation figure in line with expectations.

The consumer price index of the United States registered an advance of 0.5% at a monthly rate in December and at an annual rate, the figure was 7 percent. Inflationary pressure remains high, but not out of expectations.

The exchange rate stands at 20.3526 units per greenback, compared to yesterday’s closing of 20.4059 units, with the data from Bank of Mexico (Banxico). This means an appreciation of 5.33 cents or 0.26 percent.

The pair trades in a narrow range between a high of 20.4453 units and a low of 20.3167 units. The Dollar Index (DXY), which measures the greenback against a basket of six benchmark currencies, lost -0.36 to 95.28 points.

The dollar marked a new two-month low against that basket of currencies after the inflation report. The figures could reinforce expectations that the Federal Reserve will start raising rates starting in March.

The dollar has lost strength after yesterday’s speech by Jerome Powell, the chairman of the Federal Reserve, who showed a less aggressive tone than feared in the market after the minutes of the December meeting.

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