Mexican Peso Retreats on Dollar Strength — TradingView News

The Mexican peso traded around 16.62 per USD in late March, stepping back from its highest level in over eight years of 16.52 USD seen March 27th, as the US dollar strengthened amid hawkish remarks from Fed officials and strong US GDP growth in Q4 2023 and a robust labor market.

In Mexico, the unemployment rate unexpectedly dropped to 2.5%, an eleven-month low and below expectations of 2.8%, allowing Banxico to maintain tight borrowing conditions to combat stubborn inflation.

Inflation remained above expectations for both headline and core measures in mid-March.

Meanwhile, the Bank of Mexico lowered its benchmark interest rate by 25 basis points to 11.00% in its March meeting, while maintaining a restrictive stance to aid inflation convergence towards the 3% target.

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