The Mexican Peso declines 0.34% as Federal Reserve hawkishness lifts the US Dollar, narrowing the interest rate gap with Mexico.
The Mexican Peso fell 0.34% against the US Dollar on Monday, with USD/MXN trading at 17.35 after hitting a daily low of 17.29. The Greenback’s recovery was driven by hawkish Federal Reserve signals, as nine of 19 FOMC members now expect a rate hike this year.
The US Dollar Index (DXY) climbed 0.22% to 100.98, nearing 12-month highs. Meanwhile, Mexico’s economic calendar was light, but upcoming data includes April Retail Sales and June inflation figures. Banxico is expected to hold rates at 6.50% in its June 25 meeting.
Market focus remains on the narrowing interest rate differential between the US and Mexico, with inflation in Mexico projected at 3.77% YoY for June.