FXStreet (Córdoba) – The US dollar is rising sharply against commodity currencies on Wednesday, as crude oil slumps and amid risk aversion. USD/MXN jumped from 16.42 and reached a new record high at 16.56. Price is approaching the level that would activate another USD auction from Banxico.
Recently, Agustin Carstens, governor of the Bank of Mexico, said that the institution would do anything possible in order to avoid that a weak peso impacts on inflation. Despite the comments, that could signal a potential rate hike or intervention in the currency market, USD/MXN rose further.
The decline in crude oil prices and a stronger US dollar in the market favored the upside in the USD/MXN. The peso and the Brazilian real are among the worst performers in the currency market losing almost 1% against the US dollar.
(Market News Provided by FXstreet)