Mexico's peso slipped on Friday ahead of a widely expected rate hike by the country's central bank as the dollar gained broadly against other currencies. The peso weakened 0.09 percent to 10.1785 per dollar.
The dollar struck a fresh six-month high on Friday against major currencies as shrinking economies in the euro zone and Japan contrasted with resilience in the United States. Twenty-four of the 31 analysts surveyed by Reuters on Thursday expect policymakers will raise interest rates by 25 basis points for the third straight month to fight inflation, which is currently at a more than three-year high.
A quarter percentage point hike would take Mexico's overnight lending rate to 8.25 percent and push the spread between benchmark Mexican and US interest rates to 6.25 percentage points, making peso-denominated assets more attractive to yield-hungry investors.
Comments
Comments are closed.