Mexico City. At mid-day on Thursday, the Mexican peso extended its appreciation against the dollar. The Mexican currency has appreciated 0.97 percent against the US currency, trading at around 19.5934 units per dollar.
Amid confirmation that the European Central Bank (ECB) cut its interest rates by a quarter of a percentage point to 3.5 percent, the lowest level since June 2023, and that producer inflation in the United States was above expectations but remains consistent with the decline, the national currency started slightly lower against the dollar around $19.82. In Mexico, meanwhile, judicial reform has been approved by 18 local congresses.
The dollar remains weak worldwide, according to its weighted index, which measures the performance of the US currency against a basket of six international currencies, falling 0.14 percent to 101.517 units.
“The dollar is weakening against its main counterparts and against emerging market currencies, as the US producer price index readings for August were updated downwards, even though the September readings came out above expectations. With inflation falling in the United States, the markets have practically discounted an interest rate reduction of at least 0.25 percentage points and that puts pressure on the greenback,” said Alexander Londoño, analyst at ActivTrades, a multi-asset financial asset broker.
“The peso-dollar exchange rate is retreating downwards from the 20.13 zone and is approaching 19.50, where it could find support. Despite the downward retreat in the exchange rate, the medium-term upward trend is still maintained,” he predicts.
Producer inflation in the United States, which would be the last reading of the Federal Reserve (Fed) before its monetary policy meeting on September 18, almost guaranteeing the start of a less restrictive policy.
Initial claims for unemployment insurance in the United States for the week ending September 7 stood at 230,000, which was an increase of 2,000 from the previous week of 228,000.
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– 2024-09-22 05:21:00
