# Mexican peso falls despite rate hike, Fed action looms

> The Mexican peso fell despite a Mexican central bank rate hike, as Federal Reserve Chair Janet Yellen said the central bank could tighten policy relatively soon. Bets on a December US rate hike weighed on Brazil's stock market and the Colombian peso.

- Date: 2016-11-18 · published 2016-11-18T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/74115-mexican-peso-falls-despite-rate-hike-fed-action-looms
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of a Fed hike strengthen the dollar and pressure Latin American currencies, which raises the local cost of imported feed inputs and can weigh on dollar-denominated grain prices.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲
- USDCOP: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2023-01-19 | [Mexican peso leads LatAm FX lower as recession fears grow - Financial Post](https://feedsoft.ai/events/37997-mexican-peso-leads-latam-fx-lower-as-recession-fears-grow-financial-post.md) | -0.8% | +1.7% |
| USDBRL | 2020-06-25 | [Latam stocks fall on virus woes; Mexican peso weak before rate move - Markets - Business Recorder](https://feedsoft.ai/events/52835-latam-stocks-fall-on-virus-woes-mexican-peso-weak-before-rate-move-markets.md) | +0.9% | -3.0% |
| USDBRL | 2024-10-30 | [Latin American Currencies Dip As Mexican Peso Hits Two-Year Low - Finimize](https://feedsoft.ai/events/28093-latin-american-currencies-dip-as-mexican-peso-hits-two-year-low-finimize.md) | +0.8% | +2.6% |
| USDBRL | 2022-06-28 | [Chilean peso rallies off record lows, Mexican peso slumps 1% \| Financial Post](https://feedsoft.ai/events/41165-chilean-peso-rallies-off-record-lows-mexican-peso-slumps-1-financial-post.md) | +3.5% | +3.1% |
| USDBRL | 2021-02-25 | [EMERGING MARKETS-Mexican peso leads losses as high bond yields ravage Latam assets](https://feedsoft.ai/events/48859-emerging-markets-mexican-peso-leads-losses-as-high-bond-yields-ravage-latam.md) | +6.2% | +2.4% |
| DXY | 2024-04-24 | [Mexican Peso falls despite higher inflation, diminishing hopes for Banxico cut](https://feedsoft.ai/events/30950-mexican-peso-falls-despite-higher-inflation-diminishing-hopes-for-banxico-cut.md) | +0.2% | -1.1% |
| DXY | 2026-08-26 | [Euro falls despite report signaling ECB rate hike](https://feedsoft.ai/events/18102-euro-falls-despite-report-signaling-ecb-rate-hike.md) | +0.4% | +1.6% |
| DXY | 2026-10-08 | [Mexican Peso dives on solid US data despite rising inflation](https://feedsoft.ai/events/17274-mexican-peso-dives-on-solid-us-data-despite-rising-inflation.md) | +0.3% | — |

## Sources

- reuters.com: https://www.reuters.com/article/emerging-markets-latam-idUSL1N1DI2G2/?feedName=usDollarRpt&feedType=RSS

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