Interest Rate Hike Fails to Support Mexican Peso

The Mexican peso was volatile today after yesterday’s interest rate hike from the nation’s central bank that has boosted the currency for a little while.

The Bank of Mexico announced an interest rate hike by 25 basis points to 3.25 percent yesterday. Most market analysts were not surprised by this, saying that such move was inevitable after the US Federal Reserve hiked its own interest rates. The announcement resulted in a short-lived rally of the peso, but the currency moved lower during the Friday’s trading session, though as of now the peso managed to bounce closer to the opening level.

USD/MXN traded not far from its opening level as of 12:55 GMT today after rising to the daily high of 17.0802 and falling to the daily low of 16.9923.

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