INSUBCONTINENT EXCLUSIVE:
The Mexican peso gained ground against the United States dollar for the second consecutive session on Wednesday
This movement reflects an increase of 3.96 cents, translating to a 0.19 percent rise according to data from the Bank of Mexico
(Banxico).Throughout the day, the dollar fluctuated between a high of 20.5634 pesos and a low of 20.3729 pesos
percent to 109.06.The United States Consumer Price Index (CPI) rose by 0.4 percent in December, following a 0.3 percent increase in
November, as reported by the Department of Labor
Year-over-year, the CPI increased by 2.9 percent, compared to a 2.7 percent rise in November.These inflation figures, which matched
This rekindled hopes for Federal Reserve rate cuts.Mexican Peso Strengthens Following United States Inflation Data
(Photo Internet reproduction)Market participants had previously anticipated that rate cuts might be slower or even paused due to signs of
strength in the United States economy
ProjectionsThe recent projections regarding fewer rate cuts from the Fed have influenced exchange rates
This is due to expectations of a narrower interest rate differential between Mexico and the United States Additionally, inflation concerns
and trade tensions with former President Trump have placed further pressure on the peso
indicated a potential move towards the lower end of its trading range around 20.30 pesos per dollar, as psychological levels have been
significant early this year
The market remains attentive to forthcoming comments from Federal Reserve officials that may influence future currency movements.
