The Mexican peso appreciated against the American dollar this Thursday, for the third consecutive day. The local currency advanced after the Bank of Mexico (Banxico) confirmed a seventh consecutive rise in interest rates.
The exchange rate ended operations at 20.0971 units, compared to a record of 20.1876 units yesterday, with data from the Banxico. That means a movement of 9.05 cents or 0.45 percent for the Mexican currency.
The pair operated in an open range between a maximum of 20.2387 units and a minimum level of 20.0943 units, its best record since the end of September, and which was marked after the decision of the monetary authority was known.
The positive performance of the peso was observed despite a moderate advance of the dollar against its main peers. The Dollar Index (DXY), which measures the greenback against the other G7 currencies, was up 0.16% at 98.78 at the close.
By unanimous decision, the Mexican central bank decided to increase the price of money by 50 basis points, bringing the reference rate to 6.5 percent. Banxico argued inflationary risks due to the war in Ukraine.
The president of Mexico, Andrés Manuel López Obrador, had surprisingly announced hours earlier, in his morning press conference, that Banxico had voted to raise the rate, drawing criticism about confidentiality.
Previously, the National Institute of Statistics and Geography (Inegi) reported that inflation moderated to 7.29% in the first fortnight of March from 7.34% registered in the second of February, but it is still well above the goal.
The rise of 50 points was discounted by the market, the seventh consecutive of this cycle and the third of this magnitude, Monex explained. “We await the publication of the statement to have more clarity on future prospects.”