Mexican Peso Strengthens Against Dollar Amid US Inflation Slowdown and Rate Cut Expectations

The Mexican peso has appreciated against the US dollar, reaching its highest level this year. This increase is attributed to recent data indicating a slowdown in US inflation, which has raised expectations that the Federal Reserve will cut interest rates.

The exchange rate reached approximately 20.0942 units per dollar, reflecting a 0.42% increase compared to the previous day's close of 20.1797, according to Banco de México (Banxico).

The US Producer Price Index (PPI) showed no growth in February, which was less than the anticipated 0.3% increase. The annual rate also decreased from 3.7% to 3.2%.

Analysts suggest caution, noting potential upward pressures due to trade tensions and tariff concerns.