# U.S. rate hike fears may further weaken Mexican peso, investors anticipate

> Bets that the Mexican peso will weaken further have grown as investors expect the U.S. Federal Reserve to raise interest rates to fight inflation. U.S. inflation is at its highest in almost four years and is expected to keep accelerating. Mexico's economy contracted 8.5% last year and suffered a setback in July through September.

- Date: 2021-11-19 · published 2021-11-19T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/44261-u-s-rate-hike-fears-may-further-weaken-mexican-peso-investors-anticipate
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Expected U.S. rate hikes tend to strengthen the dollar, which raises import costs for Mexican feed buyers and can weigh on dollar-denominated commodity prices.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/us/us-rate-hike-fears-may-further-weaken-mexican-peso-investors-anticipate-2021-11-19/

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