The Mexican Peso (MXN) traded slightly lower in its key pairs on Tuesday, though it recovered a little in the minutes after the release of more inflationary data from Mexico.
More broadly, the Peso continues to drift higher as carry flows continue to favor the Mexican Peso against its counterparts due to the attractiveness to foreign investors of the relatively high interest rates on offer in Mexico (11.00%).
Given that the just-released data shows inflation edging higher, the likelihood of interest rates falling any time soon is further diminished, adding even more support to MXN.
At the time of writing, one US Dollar (USD) buys 18.03 Mexican Pesos, EUR/MXN trades at 19.49, and GBP/MXN at 23.07.
Mexican Peso recovers as Banxico less likely to cut interest rates
The Mexican Peso recovers slightly in the minutes following the release of key macroeconomic data for Mexico on Tuesday.
The Headline Inflation rate in Mexico came out at 0.38% on a month-on-month basis in June, beating the 0.24% expected by economists and higher than the negative 0.19% of the previous month, according to data from INEGI.
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