EMERGING MARKETS-Mexico peso firms on rate hike bets, weaker U.S. dollar

02/22/2018 Reuters

peso by Guanatos GwynLatin American currencies gained on Thursday as the U.S. dollar’s rally from a three-year low last week ran out of steam, with the Mexican peso strengthening more than 1 percent on strong bets Mexico’s central bank could again hike interest rates.

Minutes of the latest monetary policy meeting showed
Mexico’s central bank board members are concerned about
persistent inflation pressures and risks that the local currency
could be hammered, adding to consumer price pressures.

Mexico’s peso strengthened 1.15 percent on Thursday
even as consumer prices in Latin America’s second largest
economy rose less than expected in early February.
“The probability that Banco de Mexico keeps hiking the key
interest rate is still high,” said Gabriela Siller, head of
economic analysis at Banco BASE.

Read more…


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s