Mexican peso falls from lows not seen since 2017

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After a streak of three gains, the peso is losing ground in a market preparing to receive inflation data from Mexico and the United States this week.

The Mexican peso depreciates against the US dollar on Monday morning. The local currency falls back awaiting inflation figures, after a streak of three consecutive advances that led it to touch lows not seen since September 2017.

The spot exchange rate is located at the level of 17.8304 units per dollar. Compared with 17.7796 units of the official closing record of the Bank of Mexico (Banxico) on Friday, the currency loses 5.08 cents, which is equivalent to a fall of 0.29 percent.

The crossing operates in a limited range between a maximum of 17.8404 units and a minimum of 17.7403 units. The Dollar Index (DXY), which measures the performance of this currency against a basket of the six remaining G7 currencies, fell 0.08% to 101.13 points.

Foreign exchange market participants are preparing to receive inflation data from the United States and Mexico this week, looking for signs that confirm the scenario of pausing the long cycle of rate hikes to control price pressure.

“If the inertia of lower-than-expected inflation continues, it is possible that there will be no changes to the Fed’s scenario. But it must be remembered that the Fed raised rates last week, and Banxico will give its decision next week” Monex said.

Source: El Financiero