Dec 19, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) The Mexican peso gained ground against the dollar on Wednesday morning. Currency traders prepared for the Federal Reserve's final interest rate decision of the year.
The spot exchange rate reached 20.1161 pesos per dollar, marking a 0.52% increase from Tuesday's close. This movement represents a gain of 10.53 cents for the peso.
The dollar price fluctuated between a high of 20.2170 and a low of 20.1127 units. Meanwhile, the Dollar Index (DXY) rose slightly by 0.04% to 107.00 units.
Market expectations widely anticipate a 25 basis point rate cut by the Fed . This would be the third consecutive adjustment. However, analysts predict gradual reductions in the coming year.
Investors will closely watch the Fed's economic outlook and official statement for future guidance. Monex, a financial services company, noted the peso 's recovery from Tuesday's decline.
They attributed this to expectations of the Fed's rate cut and focus on economic projections for next year's reduction cycle. CiBanco analysts forecast the exchange rate to move between 20.05 and 20.30 pesos per dollar for the rest of the session.
Banorte's experts shared a similar outlook, predicting a range of 20.08 to 20.30 pesos per dollar. These projections reflect the market's cautious optimism about the peso's near-term performance.
The currency's strength suggests growing confidence in Mexico's economic stability amid global uncertainties. As the Fed's decision looms, traders remain alert to potential market shifts.
The peso's performance will likely depend on the central bank 's tone and future policy indications. This event highlights the interconnectedness of global financial markets and the impact of U.S. monetary policy on emerging economies like Mexico.
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COMTEX_461017312/2604/2024-12-19T04:37:59
