London, 21 December 2023
Mexican Peso Close to 3-Month High
With anticipation that the Bank of Mexico would be compelled to continue its hawkish policy bolstered by a hotter-than-expected inflation report, the Mexican peso gained past the 17.1 per USD level in December, approaching its best mark since September, which was recorded on December 19.
In the first half of December, annual headline inflation increased to 4.46%, a sharp increase from the previous period's 4.32% and far above the 4.36% predicted by the market.
Supporting the Mexican peso, Banxico kept its benchmark policy rate at an all-time high of 11.25% in its most recent meeting.
The Federal Reserve's anticipated repeated rate cuts next year, which weaken the dollar and increase demand for currencies in emerging nations, also helped the peso. (Source: Trading Economics // Edited by, The Decision Maker - Finance editors)