Mexican peso takes a breather, falls back after reaching its best level in three years

MEXICO CITY, Jan 13 (Reuters) – The Mexican peso fell back on Friday before a global rebound in the dollar, in a market attentive to comments on the day from members of the Federal Reserve after learning the day before that US inflation slowed in December.

The domestic currency was trading at 18.8801 units, with a depreciation of 0.28% against the Reuters reference price on Thursday, when it reached levels not seen since February 2020.

“In the short term, the floors continue to be placed at 18.80 and then up to the pre-pandemic lows, between 18.64 and 18.55,” said analysts from the local firm Actinver. “Despite the oversold signs, we expect a stable exchange rate in the first half of the year, as foreign resources continue to flow into the country.”

Investors’ attention was also on the start of the fourth-quarter corporate reporting season in the United States, looking for signs about the health of the world’s largest economy.

Despite the decline on Friday, the currency, which last year became one of the best performing global currencies against the dollar, accumulated a return of 3% in the course of 2023. (Reporting by NoƩ Torres)

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