DOLLZAR TO MEXICAN PESO
The Mexican peso hovered around 20.2 against the greenback in late October, close to a one-month high of 20.18 hit in the prior week, underpinned by hopes of a fourth interest rate hike this year as the October mid-month annual inflation rate came at 6.12%, above market expectations of 6.09%.
In previous monetary policy decisions, the Bank of Mexico has reassured market participants of its proactive stance to curb inflation expectations. Additionally, strong economic recovery signs added momentum to the peso, with the latest labor market data showing the unemployment rate inching lower by a decimal percentage point to 4.2%, while retail sales advanced 7.2% in August, faster than market expectations of a 6.6% rise.
The USDMXN spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the MXN. While the USDMXN spot exchange rate is quoted and exchanged in the same day, the USDMXN forward rate is quoted today but for delivery and payment on a specific future date.