# Mexican peso briefly falls 1 percent vs. US dollar after central bank hikes rates

> Mexico's central bank raised its benchmark rate by 50 basis points to 5.25 percent, in line with the Reuters poll median. The peso still fell about 1 percent to near 20.39 per dollar, close to the record lows reached after Trump's election.

- Date: 2016-11-17 · published 2016-11-17T12:00:00.000Z
- Category: macro · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/74069-mexican-peso-briefly-falls-1-percent-vs-us-dollar-after-central-bank-hikes-rates
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Higher Mexican rates aim to contain inflation from the weaker peso, but the currency's continued weakness keeps import costs for feed grains elevated. Persistent peso pressure can reduce Mexican purchases of U.S. corn and meal.

## Read by commodity

- CORN: bearish ▼
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2016-11-14 | [Mexico central bank seen hiking after peso's Trump tumble](https://feedsoft.ai/events/74066-mexico-central-bank-seen-hiking-after-peso-s-trump-tumble.md) | -3.6% | -0.7% |
| CORN | 2016-12-16 | [Dollar near 14-year highs after Fed tips more rate hikes](https://feedsoft.ai/events/6461-dollar-near-14-year-highs-after-fed-tips-more-rate-hikes.md) | -3.0% | -0.2% |
| CORN | 2016-12-14 | [U.S. bond yields, dollar gain, stocks fall after Fed rate hike](https://feedsoft.ai/events/73367-u-s-bond-yields-dollar-gain-stocks-fall-after-fed-rate-hike.md) | -2.5% | -0.4% |
| CORN | 2021-06-16 | [Dollar jumps after Fed pulls interest rate hikes into 2023 \| Reuters](https://feedsoft.ai/events/5929-dollar-jumps-after-fed-pulls-interest-rate-hikes-into-2023-reuters.md) | -2.3% | +2.5% |
| CORN | 2024-04-18 | [US dollar gains after strong data, Fed comments on rate cuts](https://feedsoft.ai/events/12555-us-dollar-gains-after-strong-data-fed-comments-on-rate-cuts.md) | -0.4% | +4.0% |

## Sources

- cnbc.com: https://www.cnbc.com/2016/11/17/mexican-peso-briefly-falls-1-percent-vs-us-dollar-after-central-bank-hikes-rates.html

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