# Mexican peso drops after inflation data fuels rate cut uncertainty

> The Mexican peso fell more than 1.7% against the dollar on December 7 to about 17.40 after Mexican November inflation came in at 4.32%, below forecasts. The data fueled speculation that Banxico could start cutting rates in 2024.

- Date: 2023-12-08 · published 2023-12-08T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/32934-mexican-peso-drops-after-inflation-data-fuels-rate-cut-uncertainty
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Rate-cut expectations weaken the peso and raise the dollar cost of Mexican imports, while the lower-than-expected inflation print is a modest signal for Mexican policy easing.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- atozmarkets.com: https://atozmarkets.com/news/mexican-peso-drops-after-inflation-data-fuels-rate-cut-uncertainty/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.