The Mexican peso benefited Friday from a weak U.S. jobs report, climbing against the U.S. dollar as speculation mounted about the central bank of the U.S. more seriously considering additional rounds of monetary stimulus, Reuters reports.
Latin America's most traded currency continued climbs from Thursday afternoon when it notched its highest value in four months, The Wall Street Journal reports.
The Bank of Mexico is unlikely to move forward with slashing interest rates since inflation is higher, one economist told Reuters.
"With inflation well above target and core steadily going up, I think there'll be resistance from some members of the board to consider a cut at this point," economist Rafael de la Fuente with UBS told the news source. "And a hike (in borrowing costs) I don't think is warranted given that most of the price pressures are supply shock driven."
In the U.S., with whom Mexico shares strong trade and commerce relations, conjecture is well underway regarding a third round of quantitative easing. Two prior rounds of debt purchases amounted to about $2.3 trillion added to the economy and influenced investors to look into Mexico's emerging market.
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