Peso Strengthens for Fifth Straight Session as Dollar Retreats

The Mexican peso strengthened for a fifth straight session on Sept. 11, as the US dollar weakened and investors absorbed key inflation data. 

The currency closed at MX$18.5545 per dollar, up 0.20% from Reuters’ Sept. 10 reference rate. Over the past five sessions, the peso has gained nearly 1%. US consumer prices rose 0.4% in August, lifting the annual rate to 2.9%, the highest since January. Economists surveyed by Reuters had expected a 0.3% monthly increase and the same annual figure. 

A separate report showed initial jobless claims rose by 27,000 to 263,000 in the week ending Sept. 6, above the 235,000 forecast. Markets still expect the Federal Reserve to lower interest rates next week. 

In Mexico, industrial production fell more than anticipated in July compared to June, with declines across all sectors except mining. On a yearly basis, industrial activity also posted a sharper contraction than forecast.