The Mexican peso took a new boost to close with a weekly appreciation of 1.67% per dollar, its best closing since July 28, after the minutes of the Bank of Mexico (Banxico) showed that the reference interest rate could remain high for longer than expected.
This boost also occurred in a week when the attention of investors was focused on the speech of Jerome Powell, chairman of the Federal Reserve, in Jackson Hole, who said that if necessary, they would continue to raise the interest rate.
On Friday, the exchange rate closed at 16.7543 pesos per dollar, an appreciation of 0.41%, or 6.91 cents.
The peso registered a streak of four sessions below 17 units per dollar, equivalent to an accumulated increase of 1.49% in that period. So far in 2023, it has registered a gain of 2.76 pesos per dollar, or 14.12%.
“At the local level, investors incorporated the hawkish tone of Banxico’s minutes as favorable for the Mexican peso as the expectation of interest rate cuts this year moderated,” explained Alejandro Padilla, Deputy General Director of Economic and Financial Analysis at Banorte.
“The dynamics of the foreign exchange market will follow the course of the tight monetary stance of central banks in developed countries,” he added.
