The Mexican peso advanced after the nation’s central bank left its monetary policy unchanged today following the surprise cut last month. The outlook for Brazil’s economy improved, though it is still not overly optimistic.
The Banco de Mexico left its key interest rate at 3 percent at today’s meeting after unexpectedly cutting it by 50 basis points in June. The Brazilian economy improved after that but retained considerable slack. Yet it is expected that recovery in the United States, Mexico’s major trading partner, should counter negative factors. Currently, it is expected that borrowing costs will remain stable for some time.
USD/MXN edged down from 12.9917 to 12.9841 as of 19:14 GMT today. EUR/MXN fell from 17.6779 to 17.6686.
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