Written by Eliana García Mora
Investing.com – Beginning the day this Friday with a slight drop in the value of the US dollar, but is set to close up 0.80% in a week of big volatility after learning that, among the Federal Reserve’s plans, are two rate hikes before the end of 2023.
At 5:45 a.m. — Mexico City Central Time — the dollar was trading at 17.13 pesos, down 0.21%, according to the spot rate available on Investing.com.
The local currency closed Thursday’s session, losing 0.08%, or 1.3 cents, against the dollar, trading at 17.12 pesos per dollar, and recording a minimum of 17.1031 and a maximum of 17.2537 pesos per dollar.
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MXN: Strong downtrend
The winning trend of the Mexican Peso is clear, so it could continue to decline. “From a technical perspective, the exchange rate is likely to continue declining towards the psychological level of 17.05 pesos to the dollar, which is the lowest level of 2016, and a rise below this level cannot be ruled out,” explains Gabriela Seiler, director of the company. Economic Analysis and Funding of Banco Rule.
The performance of the Mexican currency will follow the pattern of the Fed’s future moves, so the comments that its members are due to make next week could be catalysts to watch. Fed members such as James Bullard, president of the St. Louis Federal Reserve, Christopher Waller, governor of the Federal Reserve, and Thomas Parkin, president of the Richmond Federal Bank, are scheduled for next week.
Attention will also be focused on the Bank of Mexico’s monetary policy decision, which is expected to leave interest rates unchanged, which are currently at 11.25%. In this way, the spread with US rates is 600 basis points.
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