The Mexican peso stands out slightly against the dollar this Tuesday morning. The local currency recovers ground thanks to a weakening of the greenback, pending the monetary policy announcement of the Federal Reserve in the morning.
The exchange rate stands at 20.3641 units compared to a record of 20.4919 units at yesterday’s close, with data from Bank of Mexico (Banxico). This means a profit of 12.78 cents, which is equivalent to 0.62 percent.
The pair trades in an open range between a high of 20.4880 units and a low level of 20.3377 units, while the Dollar Index (DXY), which compares the greenback to a basket of six currencies, falls -0.58% to 103.14 points.
The dollar weakens pending the central bank’s monetary policy decision on Wednesday. Traders are betting on a sharp increase in interest rates, as well as a reduction in their huge balance of assets.
“This monetary tightening [de la Reserva Federal]necessary to fight high inflation, raises fears of slower economic growth in the coming months,” CI Banco said in a note.
In the local aspect, the gaze of the operators is also set on the disclosure of inflation figures for April and the monetary policy decision of the Bank of Mexicowhich will be taken next week.