The price of dollar in Mexico operates in the early hours of Thursday to the downside, after the president of the Federal Reserve, Jerome Powell, noted the day before that last week’s jobs report will not on its own change the direction of interest rates, as some investors feared.
The exchange rate is listed at 18,885 pesos per dollar, according to data from the Bloomberg agency.
He Mexican peso It will reduce its advance in the coming months, but will continue to trade at firm levels, helped by the central bank’s aggressive monetary tightening policy to combat high inflation, a Reuters poll revealed yesterday indicated.
While the fall would return part of the currency’s appreciation of almost 5% during 2022, the best performance in five years, it would still leave the peso close to 20 units per dollar, a threshold near which it has hovered since 2017.
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The peso strengthened as the Banco de México authorities continued raising interest rates to a record 10.5%, up 50 basis points in December. Banxico accumulates an increase of 650 basis points in the key rate since April 2021.
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Wall Street ended with a profit yesterday after the head of the Federal Reserve noted that last week’s surprisingly strong jobs report will not on its own change the direction of interest rates, as some investors feared.
High inflation and how far the Fed will push interest rates to combat it have been at the center of Wall Street’s wild moves over the past year. Powell said Tuesday that he is making progress in the fight against inflation, although a long battle remains to be fought.
According to the Reuters Agency, he echoed similar comments he made last week, after the latest rise in interest rates by the Federal Reserve. But that was before a stunning jobs report showed on Friday that US businesses added a third of a million more jobs than expected last month.
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Source: Gestion
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