Peso appreciates in volatile session start after inflation data in the US


The Mexican peso appreciates against dollar Wednesday morning, in a volatile start to the day. The local currency recovers ground after knowing a high inflation figure in the United States, higher than expected.

The exchange rate stands at 20.2575 units, compared to the official closure of 20.3575 units yesterday, with the data from Bank of Mexico (Banxico). This means a gain of 10 cents for the peso or 0.49 percent.

The pair trades in an open range between a high of 20.4670 units and a low of 20.2333 units. The Dollar Index (DXY), which compares the greenback to a basket of six currencies, lost 0.31% to 103.59 units.

The Mexican currency recovers ground after having fallen before, after the publication of the inflation data for April in the United States. Price pressure was above expectations, but less than in March.

“Although [la inflación] was above expectations, it shows a decrease compared to March, which sends a signal that a peak has been reached and could have started a downward trend,” Banco Base said.

The US consumer price index rose 8.3% year on year, after posting an 8.5% increase in March. According to Reuters, analysts expected a record of 8.1% for the April data.

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