Mexican Peso Rises As Consumer Prices Slow

The Mexican peso gained today for a third straight day against the U.S. dollar as the crude oil prices rose and on the expectation that the central bank won’t rise the interest rates after the consumer prices fell more than predicted.

The consumer prices dropped 0.63 percent in May from April. The prices for crude oil, which is Mexico’s biggest export, rose 3.3 percent to $74.38 per barrel today. The analysts think that the central bank will raise the benchmark interest rate 0.25 percentage points to 4.75 percent by the end of this year.

USD/MXN fell to 12.827 as of 10:08 GMT today from its opening level of 12.859.

If you want to comment on the Mexican peso’s recent action or have any questions regarding this currency, please, feel free to reply below.