MXN Rises to 4 Week High on Dollar Weakness

Mexico’s peso strengthened on Wednesday to its strongest level since August 19 after the U.S. Labor Department reported weaker than expected inflation in the United States.

Low inflation could complicate the Federal Reserve’s decision about whether to raise interest rates.

The peso closed at 16.5420 pesos per dollar in the international foreign exchange market, gaining 0.82 percent from the closing price on Tuesday.

Mexican markets were closed on Wednesday for the Independence Day holiday.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza