The Mexican peso depreciated on Thursday pending the announcement later of the monetary policy of the Bank of Mexico and amid market weakness after statements by the chairman of the US Federal Reserve about a possible recession.

The peso was trading at 20.0553 per dollar, down 0.08% against the Reuters benchmark price on Wednesday, after posting four sessions of gains.

The weight starts the session with few changes, while awaiting the announcement of monetary policy of the Bank of Mexicoin which a 75 basis point hike in the key rate is expected, Banco Base said.

The behavior of the foreign exchange market suggests that risk aversion continues in global financial markets due to fears of a recession, he added.

The chairman of the Federal Reserve assured Wednesday that the institution is not trying to generate a recession, but was open to compromising economic growth to control prices.

In the foreign exchange markets, the dollar index It was up 0.340% against a basket of six currencies. The index is up more than 8% this year, reflecting risk aversion and the dollar’s yield advantage, fueled by the Fed.

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