The Mexican peso loses a few cents against the dollar on Thursday, March 26, just minutes before the Bank of Mexico (Banxico) publishes its new monetary policy decision. Specialists are divided on their interest rate forecast: 16 of 31 economists surveyed by Bloomberg 'bet' that the Banxico's Governing Board will leave the benchmark rate at 7%, while the rest predict a 25 basis point cut. Banxico could extend its pause in rate cuts due to the war in the Middle East, which has driven up oil prices and accelerated inflation in the first half of March. How much does the peso lose against the dollar in Thursday's session? The peso depreciates 0.22% against the dollar, so the exchange rate stands at 17.80 units, 4 cents higher than the close on Wednesday, March 25. Felipe Mendoza, market analyst at EBC Financial Group, indicated that the exchange rate could oscillate in a range of 17.68 to 17.85 units 'depending strictly on the tone of the Banxico's communiqué and its balance of risks.' 'If Banxico recognizes the severity of the economic slowdown without neglecting its inflation mandate, the peso could consolidate near the 17.70 unit mark thanks to the interest rate differential that still favors carry trade,' he pointed out. In bank branches, the dollar is sold at 18.26 pesos, while the purchase price is 18.22 units per green bill, reported Banamex bank. In the money market, the yield on the 10-year US bond is 4.36%, while the 10-year bond in Mexico remains at a level of 9.45%. Among the most depreciated currencies are the Australian dollar with 0.69%; the Czech koruna with 0.54%; the Polish zloty with 0.52%; the New Zealand dollar with 0.51%, and the Japanese yen with 0.49%.
