Skip to content USDMXN Analysis – March-13-2024
The Mexican peso‘s value dropped beyond 16.83 against the US dollar mark. This happened after it reached a high point over the last six months at 16.78 USD on March 11. The fall came right after the US inflation report for February showed higher-than-expected results, strengthening the US dollar.
Also, the value of US Treasuries decreased, raising their yields. This situation helped the US dollar gain more strength.
Growth in Mexico’s Industrial Sector
In a positive turn of events, Mexico’s industrial sector showed improvement in January. It recorded a growth of 0.4%, starkly contrasting the previous month’s decline of 0.7%. Over the year, this sector has grown by 2.9%, marking a significant improvement from the stagnant situation in December.
This upward trend in Mexico’s industrial activities is a promising sign of economic recovery and warrants attention.
Mexico’s Inflation Dynamics and Policy Implications
In February, Mexico’s inflation rate came in lower than expected, with the year-on-year rate at 4.40%, a decrease from January’s 4.88%. The Consumer Price Index (CPI) also decreased slightly from 0.11% to 0.09% over the month.
However, the Core CPI, which excludes volatile items, was down from 4.76% to 4.64%. These figures suggest Banxico might consider reducing interest rates this year, given that inflation is lower than anticipated. This potential shift in monetary policy is a key development to watch in Mexico’s economic landscape.
About The Author
Comments are closed.