The peso strengthens against the dollar
The signs that the United States Federal Reserve (Fed) pause rate hikes mexican coinonly in their operations wholesale rose 0.26% and was quoted at 17.9251 units per dollarits best level since September 25, 2017, according to figures from the Bank of Mexico (Banxico).
In addition, he added four consecutive sessions of increases, during which he climbed 1.23%.
There weight assessment It was due to a weakening of the dollar by 0.44% according to the weighted index, and this was accentuated after the announcement of the monetary policy of the feda 25 basis point rise in its benchmark interest rate to a range between 5.00 and 5.25%, its highest level since September 2007.
However, in future guidance, the information saying “further tightening may be appropriate” has been removed.
It was stated that, “in order to assess the extent to which further tightening might be appropriate”, cumulative monetary tightening and its lagged effect on the economy, as well as economic and financial events, will be taken into account.
This means that at least the fed it no longer explicitly commits to raising interest rates next June, said Alejandro Saldaña, Chief Economist at Grupo Financiero Bx+.
The press release stated that, in determining further increases in the rate, the Committee will take into account: cumulative increases, the lag with which monetary policy affects economic activity and inflation.
Gabriela Siller, director of economic analysis at Grupo Financiero Base, said it is important to mention that despite the appreciation of the peso in the short term, upward pressure cannot be ruled out, which could happen. in the face of new episodes of
risk aversion.
LSN
Source: El Heraldo De Mexico
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