Mexican Peso Gains on US Dollar After Interest Rate Hike

The Mexican peso traded a bit higher against the US dollar following Thursday’s decision of the Mexican central bank to hike interest rates.

The Bank of Mexico raised its main interest rate by 50 basis points to 5.75%. It was the fifth increase this year. Analysts see the aggressive monetary tightening as the central bank’s attempt to support the Mexican currency that has shown massive decline after Donald Trump won the US presidential elections.

USD/MXN slid 0.13% to 20.4135 as of 17:46 GMT today.

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