Peso appreciates after US inflation data


The Mexican peso appreciates against American dollar this Tuesday morning. The local currency gains ground after figures of inflation in the United States that support the Federal Reserve take a more restrictive stance.

The exchange rate is located at 19.8302 units against the record of 19.9199 units from yesterday’s close, with the data from Bank of Mexico (Banxico). That means an appreciation of 8.97 cents, with a variation of 0.45 percent.

The pair trades in an open range with a high of 19.9471 units and a low of 19.7750 units. The Dollar Index (DXY), which measures the greenback with a basket of six currencies, yields a marginal -0.03% to 99.90 points.

The US consumer price index rose 1.2% month-on-month in March, the Labor Department reported Tuesday, in line with expectations. At annual rates, the index rose 8.5%, slightly higher than expected.

“The data raises the probability that the central bank will raise its rate by 50 basis points in its announcement on May 4 and that it will make additional increases of 50 basis points before the end of the year,” Banco Base explained in a report.

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