Peso retreats pending Fed rate decision; BMV moves forward

The peso declined early this Wednesday due to the global strength of the dollar, while investors awaited the US Federal Reserve (Fed) monetary policy decision later in the day.

The peso was trading at 16.8312 per dollar, with a loss of 0.17% against the reference value. reuters on Tuesday.

While the US central bank is expected to keep interest rates unchanged in the range of 5.25% to 5.50%, attention will focus on its update of macroeconomic projections and a subsequent press conference by its Chairman Jerome Powell.

“The main thing to know is whether the Fed maintains its expectation of three cuts this year or whether it is more cautious. Additionally, it will be important to see if the monetary authority continues to reduce liquidity support,” the Actinver firm said in an analysis note.

For the rest of the session, Banco Base analysts expect the peso to fluctuate between 16.79 to 16.99 per dollar.

The Mexican Stock Exchange (BMV) edged higher in its first operations on Wednesday in an erratic market awaiting a monetary policy decision from the US Federal Reserve later in the day.

The key S&P/BMV IPC index, which comprises a basket of the most traded shares on the domestic market, rose 0.11% to 55,608.41 points, although it had fallen 0.24% moments earlier.

Shares of Gruma, dedicated to the production of tortillas and corn flour, advanced 1.34% to 291.96 pesos, followed by shares of telecommunications giant America Móvil, which rose 0.96% to 15.80 pesos.

With information received from Reuters.

Follow information about business and current events in Forbes Mexico

Do you like to get information through Google News? Follow our Showcase to get the best stories