Mexican peso strengthens as Banxico maintains cautious stance in rising inflation
The Mexican peso (MXN) showed notable strength, trading past 17.8 per USD and continuing its recovery from the fifteen-month low of 18.75. This appreciation is largely attributed to the weakening US dollar, driven by expectations of a more dovish Federal Reserve. Softer-than-expected US inflation data has fueled speculation that the Fed might slow down or halt its rate hikes, reducing the appeal of the greenback.
Read more about MXN and Fed speculation here.
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