Mexico: What is the price of the dollar today, Tuesday, January 18, 2022?

The price of the dollar in Mexico appreciated on Tuesday after falling four consecutive days, due to growing expectations of beginning to see increases in the Federal Reserve’s interest rate as of March.

The exchange rate was quoted at 20.3328 Mexican pesos per dollar, up 0.26% against Monday’s Reuters benchmark price, when it advanced to its best level since early November.

“The depreciation of the Mexican peso is due to a greater aversion to global risk, which is reflected in a strengthening of the dollar”said Gabriela Siller, head of analysis at local Banco Base.

The US central bank will hold its first monetary policy meeting of the year next week. Although the markets are already discounting the start of a cycle of rate hikes from March, they are still waiting for signs on how many increases it could apply during 2022.

Globally, the dollar hit a six-day high on Tuesday, following a rise in US Treasury yields, while the yen stabilized after the Bank of Japan said it will maintain its ultra-loose monetary policy, causing it to depreciate against the yen. green ticket.

According to the Reuters agency, the Federal Reserve will meet next week. It is expected to raise interest rates in March, for the first time since the start of the coronavirus pandemic, with investors forecasting four hikes in total during 2022.

As investors brace for the possibility of the Fed being tougher than expected, bond yields are soaring. That of two-year paper – which follows expectations of short-term rates – exceeded 1% for the first time since February 2020.

The return on US 10-year debt also hit a two-year high.