The exchange rate ended at 20.6319 pesos per dollar after the increase of 25 basis points in the benchmark interest rate of Banco de México.
Before the news, the local currency reached 20.4633 pesos per dollar, an appreciation of 0.70 percent. After the announcement, the currency collapsed to close at 20.6319 pesos per greenback, a depreciation of 0.12% or 2.48 cents compared to the previous close.
After the benchmark close, the currency even continued to depreciate to 20.6460 pesos per dollar and at 7:00 pm it was trading at 20.6266 units, 0.03% adjustment compared to the official close, maintaining greater stability at that level.
James Salazar, deputy director of economic analysis at CIBanco, explained that “since previous days the peso had been pressured by the high inflation data in the US, which would generate an acceleration in the changes of monetary policy of the Fed”.
“What we see is that the exchange rate would have liked a more robust rate hike, of at least 50 basis points, otherwise it returned to the level of the previous closing.”
In the year the peso accumulates a depreciation of 3.42%, analysts agree that it will remain at those levels towards the end of 2021.
Reference-www.eleconomista.com.mx