The dollar fell on Thursday, September 19, after the Federal Reserve cut interest rates by 50 basis points and revised its monetary policy outlook, while the Australian dollar and Norwegian krone outperformed their peers.
Expectations had already been tilted toward an expansionary outcome in the days leading up to the Fed’s decision on Wednesday, with money markets pricing in around a 65 percent chance of a 50 basis point (bp) cut.
“The Fed’s decision was quite bold, which portends a rebound in risk and further weakness in the dollar in the near term,” said Lefteris Farmakis, currency strategist at Barclays.
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Why is the Mexican peso weakening against the dollar today? The Mexican peso was depreciating as investors continued to digest the decision the day before the Federal Reserve (Fed) to begin to relax its monetary policy with a sharp reduction in interest rates.
The domestic currency was quoted at 19.30 pesos per dollar, with a loss of 0.11 percent compared to the Reuters reference price on Wednesday.
Source: milenio
