- MXN remain near 14-month lows against the US dollar..
- Mexican central bank keep rates unchanged as expected
The Mexican peso remained steady in the market following the decision of the Bank of Mexico to keep rates unchanged as expected. Also comments from Canadian PM Trudeau about NAFTA had no significant impact.
USD/MXN is hovering around 19.70. During the last hours traded between 19.75 and 19.65, still headed toward the highest close in over a year. The pair peaked earlier at 19.75, below Tuesday’s high of 19.92.
The pair rose today on the back of a stronger US Dollar against emerging market currencies. The greenback continues to be supported by higher US yields. USD/MXN pulled back modestly following comments in the US from Canadian PM Trudeau. He said that a new NAFTA deal haven’t been signed off because of the US demand for a sunset clause.
Banxico on hold
Mexico’s central bank kept its rate unchanged at 7.5% for the second consecutive meeting. The decision was as expected an unanimous. The central bank repeated that it would maintain a prudent policy and will monitor economic variables, particularly the impact of the MXN on inflation and also on relative differences between US and Mexican rates.
Banxico continues to keep a precaution tone reinforced after the recent tension with Emerging Market assets and ahead of the July presidential elections.