MEXICO CITY. The dollar fell to its lowest level in a month this afternoon after the United States Federal Reserve (Fed) boosted its economic outlook.
In the wholesale business, the exchange rate stands at 20.31 pesos per dollar this afternoon, representing the best level of the Mexican currency since February 19, when it reached 20.25 units.
This equates to a weight gain of 1.4% or 30 cents compared to Tuesday, as well as a cumulative valuation of 5.6% or 1.20 peso since Monday of last week, according to information from the Bloomberg bureau.
In retail, the dollar has been trading at less than 21 pesos for the first time since February 24. CitiBanamex is selling the currency at 20.81 pesos and is down 1.13 units since early last week.
The dollar’s decline is related to the outlook updates the Fed announced this afternoon.
The most influential central bank in the world suggested that interest rates in the United States will remain near 0% through 2023, while raising its forecasts for inflation and economic growth for Mexico’s main trading partner.
Fed Chairman Jerome Powell also said the US central bank will share an update to its bank liquidity rule in the “coming days”.
At the outset of the pandemic, an exemption from the “additional liquidity ratio” came into effect to encourage and support major banks to provide bond markets and short-term funding.