The Mexican peso It operates erratically this Tuesday, after knowing that local inflation accelerated in October more than expected. The Mexican currency oscillates between profit and loss, while the market awaits the data from the United States.
The National Consumer Price Index (INPC) advanced 6.24% in October, its highest level since December 2017. Analysts projected 6.18% from 6% in September. Core inflation was 5.19%, the worst since May 2009.
The exchange rate stands at 20.2900 units against a record of 20.3231 units at yesterday’s close, with data from Bank of Mexico (Banxico). This means a slight appreciation of 3.31 cents, equivalent to 0.16 percent.
The cross moves in a limited range between a maximum of 20.3748 units (which touched a few minutes after the data was known) and 20.2806 units per dollar. Inflation reinforces bets for another rate hike in Mexico.
“We see a significant risk that the increase will be from 50 basis points to 5.25 percent. We cannot rule out this scenario given the current inflationary dynamics and lower global monetary laxity,” Banorte explained in a report.
The behavior of inflation in the United States will be known tomorrow and any bullish surprise is likely to rekindle speculation about an advance of rate hikes by the Federal Reserve (Fed).
Reference-www.eleconomista.com.mx