Peso closes ‘happy’ after the Fed raised its interest rate – El Financiero

The Mexican coin appreciated against the US currency after the chairman of the Federal Reserve, Jerome Powellwould say that the impact on the conflict in Ukrainehowever, indicated that they consider an appropriate monetary tightening so that inflation returns to the target and estimated that employment will remain strong.

In the afternoon, the Federal Reserve increased its interest rate by 25 base points, to be in a range of 0.25 and 0.50 percent, which was not a surprise compared to what analysts expected.

At the close, the Mexican currency appreciated 1.05 percent, with which the exchange rate was quoted at 20.6087 units per dollar, according to data from the Bank of Mexico (Banxico).

The peso touched a minimum of 20.5982 and a maximum of 20.8545 pesos per dollar during the day.

“The deterioration of the outlook for inflation justifies further increases in interest rates and, furthermore, we estimate that the reduction of the balance sheet will begin in June. In Mexico, we estimate that Banxico will raise the target rate by 50 basis points at its meeting this month,” analysts at Ve por Más indicated.

At the bank window, the dollar is sold for 21.12 units, according to data from Citibanamex.

The Bloomberg dollar index, which measures the strength of the greenback against a basket of 10 currencies, fell 0.66 percent to 1,197.35 points.

For the dollar index (DXY), a drop of 0.64 percent was recorded to settle at 98,349 points.

The main currencies that beat the dollar this Wednesday are the Russian ruble, with 9.19 percent; the Swedish crown, with 2.28 percent; the Icelandic krona, with 2.25 percent; the Polish zloty, with 1.77 percent; the Czech crown, with 1.30 percent; the South African rand, with 1.28 percent; the Australian dollar, with 1.32 percent; the New Zealand dollar, with 1.03 percent; the Hungarian forint, with 0.99 percent and the euro, with 0.72 percent.

Source link

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker