The Mexican coin continued to appreciate once morest the dollar to reach its best level in six months, following the Bank of Mexico (Banxico) made its monetary policy announcement, which increased its reference interest rate by 50 basis points, in line with what analysts expected.
According to Banxico data, the Mexican currency appreciated 0.45 percentwith which the exchange rate traded at 20.0971 units per dollar, which marks a positive rally of 10 profit sessions and its best level once morest the US currency since September 24, 2021.
The peso touched a minimum of 20.1084 and a maximum of 20.2383 pesos per dollar during the day.
“The markets had already discounted this increase, so there was no greater volatility in the peso/dollar exchange rate. However, what surprised investors was not the rate increase, but the announcement in ‘La Mañanera’. The President of the Republic announced Banxico’s decision prior to the official announcement, questioning the autonomy of the central bank and generating mistrust among investors,” said Diego Laviada, junior analyst at Masari.
On bank windowthe dollar is sold at 20.59 units, according to data from Citibanamex.
The Bloomberg dollar index, which measures the greenback fortress once morest a basket of 10 currencies, it rose 0.09 percent to 1,196.84 points.
For the dollar index (DXY), an increase of 0.13 percent was registered to settle at 98,778 points.
“The central bank of mexico presented another interest rate hike at its March meeting and reiterated its commitment to make the necessary adjustments to anchor inflation and inflation expectations and preserve financial stability. Amid tighter external financial conditions and additional price pressures, the rate decision and revised upward inflation forecasts suggest policymakers have a high bar for considering increases of more than 50 basis points. Felipe Hernandez of Bloomberg Economics.
The main currencies that gain once morest the dollar are the South African rand, with 1.60 percent; the Peruvian sol, with 0.90 percent; the Chilean peso, with 0.58 percent; the Swedish crown, with 0.33 percent; the Norwegian krone, with 0.16 percent and the Australian dollar, with 0.16 percent.
