Mexican peso rises after rate hike

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BANCO DE MEXICO (Friday, May 13) – A gauge for Latin American currencies rose on Friday as the dollar dipped, clawing back some gains in a volatile week marred by risk-off sentiment on global growth fears, while Mexico’s peso strengthened after its central bank hiked interest rates.

Mexico’s peso gained 0.7% against the dollar, bouncing off one-week lows after the Bank of Mexico on Thursday, May 12th, raised the benchmark interest rate by 50 basis points to 7.0%, as expected.

Headlines pointing to smoother commercial trade, new trade patterns with Latin American countries or a resolution in the Russia-Ukraine war could lift stocks in the weeks to come, analysts say.

Mexico peso 20.1118

Source: El Financiero

Mexico Daily Post