The USD/MXN currency pair pulled back from a 2-week high of 17.4653 on Monday ahead of the outcome of the Federal Reserve’s policy meeting.
The Fed is largely expected to leave its federal funds rate target range intact at 3.50%-3.75% at its April 28th-29th meeting, following three successive rate cuts last year.
The vast majority of FOMC policy makers judged that upside risks to inflation and downside risks to employment were elevated, while many officials noted these risks had risen with developments in the Middle East, the minutes from the Fed’s March meeting showed.
A prolonged confrontation in the Middle East would likely trigger more persistent increases in energy prices, while these higher input costs would be more likely to pass through to core inflation.
Investors will also be paying close attention to the press conference with Fed Chair Jerome Powell for clues over the timing of future interest rate cuts.
FOMC policy makers had signaled one rate cut for this year and another one in 2027.
Meanwhile, MXN traders will be paying close attention to Mexico’s preliminary GDP growth figures for Q1 due out on Thursday.
The USD/MXN currency pair was last down 0.17% on the day to trade at 17.3640.
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