USD/MXN holds above 18.00, below record highs

By FXStreet FXStreet (Córdoba) – Today the Mexican peso is rising modestly against the US dollar on a quiet session in the forex market. USD/MXN is pulling back after hitting on Friday at 18.32, an all-time-high.

The pair bottomed on Monday at 18.15 and then rebounded. It was trading at 18.22, modestly lower for the day but holding significantly above 18.00.

Today the Bank of Mexico announced two USD auctions but receive no offers. The next meeting of Banxico will take place February 4. The expectation is that it will remain on hold after rising the key rate in December, following the actions taken by the Federal Reserve. If the Mexican peso continues to drop, some analysts consider that Banxico could consider raising rates in order to avoid and excessive depreciation.

The stabilization today in crude oil prices helped the Mexican peso, that with the Brazilian real are the best performers among Latin American currencies on Monday. The WTI barrel dropped sharply during the Asian session and bottomed at $28.35; then it rebounded. It remained steady during the last hours hovering slightly below $29.00.
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Source:: FX Street