Mexico June industrial production rises 0.6% vs May

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(Reuters) – Major Latin American currencies fell on Friday as the dollar gained on hotter-than-expected producer prices data, while Mexico’s peso rose after its central bank indicated rates could stay steady for a while.

The MSCI Latam currencies index fell 0.6%, putting it on track for a second weekly decline, with the dollar headed for a fourth weekly gain. U.S. producer prices increased slightly more than expected in July, but the trend was consistent with moderating inflationary pressures and kept bets of a U.S. rate-hike pause largely intact.

Mexico’s peso gained 0.9% after the central bank maintained its benchmark interest rate on Thursday and underscored that the inflationary outlook remains “very complex”, suggesting the rate likely staying on hold for longer.

Scotiabank analysts expect Mexico’s monetary policy rate to remain steady until December, after which a 25-bps cut is likely. Adding to the case, data showed Mexican industrial output rose 0.6% in June from May and was 3.7% higher year-on-year, beating expectations. 

Source: Reuters

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