Mexican peso advances on unsteady ground - London Business News | Londonlovesbusiness.com
Briefly

The Mexican peso strengthened against the U.S. dollar, driven by a 6.4% year-over-year wage increase promoting purchasing power. However, concerns remain over a projected GDP contraction and weak annual growth of 1.5%. December retail sales showed a modest increase but an overall decline year-over-year, signaling stagnant consumption. Banco de México responded with an unexpected interest rate cut to encourage growth. External factors, like rising U.S. jobless claims, helped support the peso, but structural vulnerabilities and global trade tensions introduce significant risks, necessitating cautious sentiment in the market.
The recent strength of the Mexican peso against the dollar reflects domestic wage growth and external economic factors, but caution is necessary due to ongoing vulnerabilities.
Read at London Business News | Londonlovesbusiness.com
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