The Mexican peso trades with a moderate loss against the American dollar On Monday in the morning. The local currency retreats in a market awaiting the next two-day meeting of the Federal Reserve American (Fed).
The exchange rate stands at 20.3841 units compared to a record of 20.3453 units at the close of Friday, with data from the Bank of Mexico (Banxico). This means a loss of 3.88 cents, which is equivalent to 0.19 percent.
The pair trades in a tight range with a high of 20.4896 units and a low of 20.3409 units. The Dollar Index (DXY), which compares the greenback to a basket of six benchmark currencies, rose 0.57% to 103.55 points.
Currency market participants are still awaiting the US central bank’s monetary policy meeting this week, amid bets on a sharp rate hike in response to the inflation.
Inflation in the United States, a priority for the Fed, recorded a year-on-year advance of 6.6% in March and prices rose 0.9% in the monthly comparison. According to figures from Department of Commerceis a peak in 40 years.
The market also continues to pay attention to the rebound in coronavirus infections. Covid-19 in China and the possibility that the strict confinement measures in the Asian giant will affect the second largest economy and supply chains.