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Strengthened against the US dollar, the Mexican Peso had recent volatility subsided with the local stocks and bonds gain.
In a city at Mexico, the peso was quoted closing to MXN 10.7225 to US dollar, comparing with MXN10.7740, opening and MXN10.7810, Friday closing.
As stated by a local trader, this week exchange rates is very stable as compared to the previous week, the US Treasury yields had fluctuations with the peso rates. The submission of the fiscal reform bill in Congress had caused the peso to appreciate, as expected by the trader.
Apart from the fiscal reforms, the analysts stated that the Mexican inflation data in the first half of June and the bank of Mexico monetary policy meeting are now due in Friday. As the bank stated that the balance in the inflation risks for the short term has not deteriorated, it remained high.
As cited in the continuous inflation risk, the bank had raised the overnight rates to 7.25% which comes from 7% this April. In May, the rates remained unchanged thus maintaining also the tightening bias.
This yearly inflation measures the CPI to 3.95%, the end of May, at the top end of the banks’ target range of 2 to 4%. Some local markets, the local government bonds yielding were lower. The 10-year bonds yields that are due on 2015 decreased to 4 basis points to 7.60%. The IPC stock index benchmark rose to 0.6% that was lesser than that of hour close.
06:41
Posted on Jun-19-2007
