Currencies in Latin America rose on Thursday, with the Mexican peso strengthening for a third day after upbeat retail sales data even as the central bank meeting minutes highlighted persistently high inflation.
The peso gained 0.3% after data showed retail sales in Mexico rose 0.4% in March from February. “The strength of the Mexican peso is related to this sequence of positive activity data lately and really adds to the story that the Mexican economy started 2022 more positively than everyone expected, in spite of the tightening cycle by Banxico and the Fed risks that continue to accumulate,” said TS Lombard economist Wilson Ferrarezi.
“The problem is that the positive data will face significant downside risks in the coming months.” Most of the Mexican central bank’s five board members believe the balance of risks for the trajectory of inflation has worsened again and remains biased to the upside, minutes from its latest monetary policy meeting showed.
Source: El Financiero