The Mexican peso ended the Friday’s trading session with losses as Brazil’s budget deficit widened to a record, increasing chances for a credit rating downgrade. The currency dropped even as the central bank refrained from an interest rate cut.
The Bank of Mexico left its main interest rate at 3 percent yesterday, and analysts believe that the central bank will not change its monetary policy anytime soon. The central bank has a difficult task balancing between failing economic growth and surging inflation, and any change has a potential to make the already bad situation even worse. The Mexican currency is not particularly attractive for investors as a result of all the problems the country’s economy faces.
USD/MXN rose from 13.4399 to close at 13.4787.
If you have any questions, comments or opinions regarding the Mexican Peso,
feel free to post them using the commentary form below.
Be First to Comment