Mexican Peso Firm Even as Central Bank Performs Surprising Rate Cut
The Mexican peso was firm today even after the central bank unexpectedly cut its main interest rate and voiced concerns about domestic economic growth. The currency gained against other majors, including the US dollar and the euro.
The Banco de Mexico (the central bank of Mexico) cut its key interest rate by 25 basis points to 3.75 percent today. Such decision was a surprise to the vast majority of market analysts. Policy makers explained the cut by concerns about Mexican economic growth that will likely be slower than was previously estimated.
The peso managed to hold ground against the dollar, which was exceptionally week because of awful non-farm payrolls. Against the euro, the Mexican currency was also firm as the shared 17-nation currency was not particularly strong too.
USD/MXN traded at 13.1827 as of 19:48 GMT today after opening at 13.3891. EUR/MXN slid from 17.5665 to 17.3720.
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Earlier News About the Mexican Peso:
- Mexican Peso Suffers from Risk Aversion (2013-08-27)
- Signs of Growth Lift Mexican Peso (2013-08-08)
- Mexican Peso Weakens on Fed Tampering Concerns (2013-07-31)
- Mexican Peso Suffers from Poor US Data (2013-05-02)
- US Durable Goods Orders Help Mexican Peso, Currency Loses Gains Later (2013-03-26)