Mexican Peso Gains as Interest Rates Remain on Hold

The Mexican peso was firm today after Mexico’s central bank left its main interest rate unchanged last Friday and suggested that an interest rate hike may be possible in the future.
The Bank of Mexico left its target for the overnight interbank funding rate at 4.50 percent on November 30. The central bank hinted that it is able to raise the rate if that will be necessary. Declining economic growth and inflation that remained above the central bank’s target may indeed result in an interest rate hike.
USD/MXN fell from 12.9628 to 12.9411 as of 10:59 GMT today and its daily minimum was at 12.9120.

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