# Mexico peso to pare recent gains but be kept firm by tight policy

> A Reuters poll expects Mexico's peso to pare its recent advance but stay at firm levels. Banxico has kept tightening aggressively, raising its benchmark to a record 10.5% after a 50 basis point hike in December and 650 basis points cumulatively since April 2021.

- Date: 2023-02-07 · published 2023-02-07T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/37563-mexico-peso-to-pare-recent-gains-but-be-kept-firm-by-tight-policy
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Higher Mexican rates attract carry inflows and support the peso, which lowers the peso cost of dollar-priced feed imports for Mexican buyers. A firmer peso is mildly bearish for USD/MXN.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/mexico-peso-pare-recent-gains-be-kept-firm-by-tight-policy-2023-02-07/

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