The Mexican peso slipped a bit against the US dollar during the American trading session after Mexico’s central bank raised its overnight interbank funding rate.
The Banco de Mexico lifted its key interest rate by 25 basis points to 7.5%. Such move was widely expected by experts. The central bank increased borrowing costs as a measure to combat rising consumer prices after annual inflation climbed to 6.77% in December — more than double the central bank’s target of 3%.
USD/MXN edged up by 0.24% to 1.2598 as of 20:34 GMT today.
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