FX.co ★ Mexican Peso Holds at 6-Week High

The Mexican peso traded around 17.3 per USD, holding near the six-week high of 17.25 reached on April 15th, as fading expectations of further Federal Reserve rate hikes bolstered emerging-market currencies against the dollar. Benchmark oil prices retreated from the multi-year highs seen in late March, tempering risk-off sentiment. Meanwhile, mid-month inflation data showed Mexico’s headline inflation accelerating in March to its highest level in 17 months. This reading strengthened the case of hawkish members of the Bank of Mexico, increasing the likelihood that the central bank will hold rates steady at its upcoming meeting, following this month’s contentious rate cut.