MEXICO CITY. -The dollar fell this afternoon to its lowest level in a month, after the US Federal Reserve (Fed) boosted the economic outlook.
In wholesale operations, the exchange rate stands this afternoon at 20.31 pesos per dollar and means the best level of the Mexican currency since February 19, when it came to 20.25 units.
That equates to a weight gain of 1.4% or 30 cents relative to Tuesday, as well as a cumulative appreciation of 5.6% or 1.20 pesos since Monday last week, according to information from the Bloomberg agency.
On retail, the dollar is trading at less than 21 pesos for the first time since Feb. 24. CitiBanamex sells the currency at 20.81 pesos and has accumulated a decrease of 1.13 units since the beginning of last week.
The fall in the dollar is related to the expectations updates the Fed announced this afternoon.
The world’s most influential central bank suggested that interest rates in the United States will remain close to 0% until 2023, while raising its inflation and economic growth forecasts for Mexico’s main trading partner.
Fed Chairman Jerome Powell also said the U.S. central bank will share an update on the bank liquidity rule in the “coming days.”
At the start of the pandemic an exemption from the “supplemental liquidity ratio” came into force to encourage large banks to lend and support bond markets and short-term financing.