According to recent financial news, the Mexican peso depreciated against the dollar on Friday morning.This decline follows a mixed US labor report and Mexicos inflation data, which continues to slow down.
The peso fell to 20.5605 per dollar, marking a 0.49% decrease from the previous days close of 20.4612 pesos per dollar.The dollars strength is influenced by a stable US employment rate and a reduced unemployment rate of 4%.
Meanwhile, Mexicos consumer price index moderated to 3.59% in January, supporting further interest rate cuts by Banco de Mxico.Banco de Mxico recently accelerated its rate cuts with a half-point reduction, following five previous cuts of 25 basis points last year.
Analysts predict another 50 basis point cut in March, potentially lowering the reference rate to 8.50% by year-end.Mexican Peso Slides Amid United States Labor Report and Local Inflation Data.
(Photo Internet reproduction)The US labor market showed mixed results, with slower job growth but a lower unemployment rate.
This scenario supports stable interest rates in the US, contributing to the dollars strength.The DXY Index, which measures the dollar against a basket of currencies, remained stable at 107.67 points.
Mexicos inflation data supports Banco de Mxicos decision to continue cutting interest rates.The central banks actions aim to stimulate economic growth while managing inflation.
The pesos movement is also influenced by the dollars performance against other global currencies.