Futures Market News
Mexican peso drives toward recovery from lowest value against dollar in three years
Jun 08, 2012 12:35 PM
Development and growth are in peril but Mexico's central bank left interest rates intact on Friday at 4.5 percent, Reuters reports.
But the Banco de Mexico also noted concerns about inflation are strong as the peso loses value.
Latin America's most traded currency was coming off 0.3 percent losses on Thursday, which were spurred by a surprise interest rate cut in China earlier during the trading session, according to Bloomberg.
"Going forward, the board will remain alert to how all factors determining inflation develop, since their behavior might make it advisable to make the monetary policy stance more or less restrictive depending on the scenario that arises," according to the central bank.
Since policy makers last convened in April, the peso has dropped 8 percent of its value, Reuters reports. Now in the process of recovering from its lowest value in 36 months, touched last week, the peso still faces contagion issues from the euro zone debt scourge.
Mexico's central bank last month raised forecasts for development and growth as the year began with heavier U.S. demand for the nation's manufactured goods.
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