The Mexican peso appreciated slightly against the American dollar this Wednesday. The local currency recovered ground due to a decline in the greenback against its main peers, in a day with erratic movements.
The exchange rate ended the session at 20.0163 units against an official close of 20.0756 units yesterday, with data from the Bank of Mexico (Banxico). That means a gain for the peso of 5.93 cents or 0.30 percent.
The pair traded without clear direction in a narrow range with a high of 20.0748 units and a low of 19.9468 units. The Dollar Index (DXY), which measures the currency with six currencies, fell -0.58% to the level of 100.37 units.
The parity seeks to consolidate above 20 units, while the attention of the operators continues to focus on the possibility that the Federal Reserve toughen its stance further and the economy grows less.
The International Monetary Fund (IMF) and the world Bank decided this week to reduce their growth forecasts for the global economy, mainly due to the impact of the conflict in Ukraine on prices.
“Traders remain aware of the war in Ukraine as they prepare for a period of lower growth and high inflation, as the IMF and World Bank have anticipated,” a CI Bank note explained.
Recent comments from senior members of the Federal Reserve US have supported raising interest rates at a faster pace, with proposals for increases of up to 75 basis points.