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The Mexican peso appreciated to 16.62 per dollar on Friday, its strongest level since late 2015, after US inflation slowed to 3% in June. Analysts point to Bank of Mexico rates near 11.25%, the wide gap with Fed rates, and strong capital and remittance inflows as drivers.
The Fed had raised its funds rate to 5.25%-5.5% earlier that week.
A stronger peso lowers the peso cost of dollar-priced feed and ingredient imports into Mexico. The currency move is driven by monetary policy and capital flows rather than changes in feed supply.
mexiconewsdaily.comMND StaffJul 28, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
