Peso loses ground after higher-than-expected US inflation data

The Mexican peso depreciates moderately against the American dollar the morning of this Wednesday. The local currency retreats after it was known that inflation in the United States advanced more than expected in October.

The US Consumer Price Index (CPI) accelerated in October to 6.2%, in its largest annual advance since November 1990. The data raises the bets of upwards to the rates of the Federal Reserve sooner than expected.

The exchange rate stands at 20.3864 units against an official close of 20.3254 units yesterday, with the data from Bank of Mexico (Banxico). That means a weight loss of 6.1 cents, equivalent to 0.30 percent.

The pair moves in a range between a high of 20.4520 units and a low of 20.3130 units per dollar. For its part, the Dollar Index (DXY), which compares the greenback with six currencies, advanced 0.23% to 94.17 points.

“The markets show a greater perception of risk due to global inflationary pressures, which could increase with the winter season,” said Gabriela Siller, director of analysis at local Banco Base.

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