Banxico's Carstens: Peso moves a good example of the currency overreacts

The Bank of Mexico Governor Agustín Carstens crossed the wires last hours, via Reuters, commenting on the exchange rate and monetary policy.

Main Headlines:

Peso losses and recovery this year a good example of how peso overreacts

Expect inflation will be above target range this year, begin falling by end of 2017 and converge to 3 pct in 2018

Bank will act opportunely to ensure inflation expectations are anchored

Mexico looking for best combination of monetary, fiscal policy

Meanwhile, the Mexican peso caught a fresh bid-wave on Banxico’s Carstens’ comments, knocking-off USD/MXN to session lows near 18.9940 levels.