MEXICAN PESO HITS NEW YTD HIGH AGAINST US DOLLAR AMID BANXICO RATE CUT SPECULATION
- Mexican Peso strengthens to a YTD high amid light US economic data.
- Banxico Deputy Governor hints at possible rate cuts despite maintaining a restrictive policy outlook.
- Near-term momentum favors Peso, pushing USD/MXN to new lows despite dovish Banxico remarks.
The Mexican Peso registered a new year-to-date (YTD) high against the US Dollar on Wednesday amid a scarce economic schedule in the United States (US). Traders shrugged off a warm US inflation report announced on Tuesday, while Mexican Industrial Production was aligned with estimates. Therefore, the USD/MXN exchanges hands at 16.74, down 0.31%.
Mexico’s economic docket featured Bank of Mexico (Banxico) Deputy Governor Omar Mejia crossing the newswires. Mejia said it’s not premature to consider lowering interest rates set at 11.25%, though he warned that future rate cuts should remain restrictive. He added that the challenge going forward is to adjust policy as the disinflation process evolves.
Despite Mejia’s dovish remarks, the USD/MXN extended its losses toward new (YTD lows as the pair accelerated toward the 16.70 figure during the midweek session.
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