Peso appreciates pending inflation data and Banxico announcement

The Mexican peso appreciates against American dollar this Wednesday. The local currency advances and at times falls below 20.2000 units, with traders awaiting the announcement of the Bank of Mexico (Banxico) this week.

The exchange rate 20,2007 units are located against a record of 20,2786 units in its closing yesterday, with the official Banxico data. This means an advance of 7.79 cents for the peso, equivalent to a variation of 0.38 percent.

The cross operates in a limited range between a maximum of 20.2900 units and a minimum of 20.1889 units. The Dollar Index (DXY), which measures the greenback against a basket of six reference currencies, moved 0.34% to 98.83 points.

Local investors turn their attention to inflation in Mexico and the central bank’s monetary policy decision, which will be published this week. Expectations of high inflation and an increase in rates support the peso.

“It seems that the financial markets are stabilizing, getting used to the war [entre Rusia y Ucrania]”, CI Banco explained in a report. “However, everything can change the moment something negative happens,” he warned.

Analysts anticipate that Banxico will raise its rate for the seventh consecutive time, after learning that same day of inflation figures for the first half of March with data still higher than the target of 3% +/- one percentage point.

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