Peso falls marginally pending monetary policy announcements

The Mexican peso depreciates marginally against the American dollar on Tuesday. The local currency loses marginally and shows little change in a market that is cautious and attentive.

Traders await the latest 2021 monetary policy announcements from major central banks this week. The market is also keeping an eye on the advance of the Covid-19 Omicron variant.

The exchange rate stands at 21.0540 units against a close of 20.9959 units yesterday, with the data of Bank of Mexico (Banxico). The above means a loss of 5.81 cents or 0.28 percent for the Mexican currency.

The cross operates in a range between a maximum of 21.0574 units and a minimum of 20.9695 units. The Dollar Index (DXY), which measures the greenback against six benchmark currencies, falls marginally -0.04% to 96.28 units.

“As has been the trend in recent weeks, attention is focused on matters related to Ómicron and awaiting the conclusions of monetary policy meetings this week,” local firm CI Banco explained in a report.

In the case of Mexico, most analysts expect the central bank to raise the key interest rate by 25 basis points on Thursday for the fifth time in a row, to 5.25%, although an increase of 50 basis points is not ruled out.

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Reference-www.eleconomista.com.mx

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