Ella 
In early Asian trading on Tuesday, USD/MXN strengthened for the second consecutive day. USD/MXN was supported by a stronger U.S. dollar and rising U.S. bond yields. USD/MXN is currently trading around 17.47, up 0.46% on the day.
Overall inflation in Mexico was 4.64% in the first half of September, compared with 4.64% at the end of August, according to statistics agency INEGI. Mexican President Andres Manuel Lopez Obrador said last week that Mexico’s central bank was doing a good job as inflation eased, but it should focus more on boosting the economy. develop. However, if inflation declines, Mexico’s central bank may adjust monetary policy, which could put pressure on the Mexican peso.
As for the U.S. dollar, the U.S.’s statement of “implementing higher interest rates for a longer period of time” overall boosted the U.S. dollar. Earlier on Tuesday, Minneapolis Federal Reserve President Neel Kashkari said he was among policymakers who believe the Fed will raise interest rates one more time this year. Shkari also added that U.S. interest rates may have to be higher and maintained for longer to suppress inflation. This, in turn, boosts USD/MXN and acts as a tailwind for USD/MXN.
