The Mexican peso it regains ground after the blow it received yesterday due to a high figure for US inflation. Traders expect to hear this afternoon of the monetary policy announcement of the Bank of Mexico (Banxico).
The exchange rate is located at 20,5217 units per dollar compared to the official closing of 20,6071 units yesterday, according to the central bank. This means that the peso recovers 8.54 cents, which is equal to 0.41 percent.
Traders expect Banxico to respond to the increases in inflation with a rise in its reference interest rate, the fourth in a row. October inflation in Mexico has been the strongest since the end of 2017.
Parity operates in a range with a maximum of 20.6886 units and a minimum of 20.5000 units. For his part, Dollar Index (DXY), which measures the behavior of that currency, moves 0.13% at a level of 94.98 points.
The dollar rose almost 1% yesterday in its largest daily advance since March of last year (when the pandemic began) and the peso lost 1.38% to a US inflation figure that was the highest since November 1990.
In its three most recent monetary policy announcements, Banxico has made increases of 25 basis points that place the price of money at 4.75 percent. Analysts believe that this time it would rise by 50 basis points.
Local inflation, 6.24% in its interannual record for October, is double the average of the central bank’s target range. A rate 50 basis points higher would increase the carry with the peso, but not yet exceed inflation.
“Although it is possible that this Thursday the movements in the markets will moderate after the accelerated reactions of Wednesday, the inflation that increasingly corrodes more countries is still worrying,” said Meta-Analysis.
Reference-www.eleconomista.com.mx