7 Aug 2015
USD/MXN drops 1% and trims weekly gains
FXStreet (Córdoba) - The Mexican peso surged across the board on Friday and trimmed weekly losses against the US dollar. USD/MXN dropped from 16.30 and bottomed during the American session at 16.10, the lowest level since Tuesday.
The pair is about to end the week with modest gains and far from 16.41, the level it reached on Thursday, before turning to the downside.
Mexico: inflation at record low
Data release today showed that inflation continued to cool in July, reaching another record low. The INEGI informed that the CPI annual rate dropped from 2.87% to 2.74%. For the third month in a row it remained below 3%, the central bank’s target.
The new data showed that the depreciation of the exchange rate is not having a considerable impact on prices. Last week the peso rose sharply, recovering from record lows, after the Bank of Mexico, announced measures to reduce market volatility and after Agustin Carstens (Banxico governor) mentioned that if needed, the central bank would rise rates to strengthen the peso, despite what the Federal Reserve does.
The pair is about to end the week with modest gains and far from 16.41, the level it reached on Thursday, before turning to the downside.
Mexico: inflation at record low
Data release today showed that inflation continued to cool in July, reaching another record low. The INEGI informed that the CPI annual rate dropped from 2.87% to 2.74%. For the third month in a row it remained below 3%, the central bank’s target.
The new data showed that the depreciation of the exchange rate is not having a considerable impact on prices. Last week the peso rose sharply, recovering from record lows, after the Bank of Mexico, announced measures to reduce market volatility and after Agustin Carstens (Banxico governor) mentioned that if needed, the central bank would rise rates to strengthen the peso, despite what the Federal Reserve does.