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Price of the dollar today in Mexico: what is the exchange rate at this Tuesday, February 14?

Price of the dollar today in Mexico: what is the exchange rate at this Tuesday, February 14?

The price of dollar in Mexico trades lower in the early hours of Tuesday as US Treasury yields fell from nearly six-week highs as investors bet on a moderation in inflation in USA.

The exchange rate is listed at 18,568 pesos per dollar, according to data from the Bloomberg agency.

According to the Bloomberg Agency, Mexico analysts at JPMorgan Chase & Co. and Barclays Plc. They raised their interest rate bets for Latin America’s second-largest economy after the central bank surprised investors with a larger-than-expected rate hike.

READ ALSO: Banking earned S/ 2,500 million due to exchange rate volatility in 2022

Both Wall Street banks now expect Banxico, as the monetary authority is known, to raise its benchmark rate to a record 11.5%. Gabriel Lozano, JPMorgan’s chief economist for Mexico and Central America, even sees a high probability of another 50 basis point rise in March if core inflation continues to surprise to the upside.

Mexico surprised markets on Thursday by raising borrowing costs by half a percentage point to a record 11%, outperforming the US Federal Reserve. The central bank’s board also said it may present a smaller increase at its next meeting, suggesting further increases are in the works.

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The actions of Wall Street had gained ground the day before, while US Treasury yields fell from nearly six-week highs as investors bet on a moderation in US inflation.

According to the Reuters Agency, the US Bureau of Labor Statistics will publish today the Consumer Price Index (CPI) for January, which is expected to show the effectiveness of the restrictive policy of the Federal Reserve in controlling inflation.

Although US equities lost some ground last week, they had rallied during the first weeks of 2023, buoyed by the prospect of slowing inflation, which could allow the Fed to slow or pause interest rate hikes.

READ ALSO: Gold falls on dollar strength ahead of US inflation data.

Source: Gestion

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