The Mexican currency ended Thursday’s session with little change in a context of a general strengthening of the dollar, given the high inflation figures in the United States, which could lead to a more aggressive tightening of monetary policy.
At the local level, the reaction to the 50 basis point increase in the target rate of the Bank of Mexico was limited.
The exchange rate ended operations at 20.3257 units per dollar, compared to 20.2857 units per greenback on Wednesday, according to Banxico. This movement meant a loss of 4 cents or a depreciation of 0.20 percent.
The pair traded in an open range with a high of 20.4742 units and a low of 20.2309 units, which it touched after the announcement.
Analysts point out that what is weighing on the market is the dollar and the direction that the Federal Reserve is taking, which in some way points to more strength for the greenback.
Thus they mention that not only in the peso, but in other emerging currencies, more weakness is to be expected despite the fact that their central banks try to keep the rate differential as attractive as possible.
In this context, the Dollar Index advanced 1% to a level of 104.83 points.
Last week the US central bank increased its reference rate by 50 basis points, in response to persistent inflation that is at maximum levels and does not give up.
In electronic operations, the peso recovered ground against the dollar and traded at 20.2456 units per dollar.