Forex
Peso Tumbles Above 17 Per Dollar After Fed Chair Warsh's Inflation Remarks
The Mexican peso plummeted to above 17 units per U.S. dollar on Friday after Federal Reserve Chair Kevin Warsh's speech at the Fed's annual symposium in Jackson Hole, Wyoming.
The exchange rate exceeded 17 pesos per dollar for the first time in eight days, with the spot rate reaching 17.0151 soon after Warsh's remarks.
Warsh emphasized that the Fed must ensure core inflation moves towards its 2% target, citing July's personal consumption expenditures price index rising more strongly than expected.
The dollar strengthened and futures market reflected increased bets on a Federal Reserve interest rate hike, with investors potentially expecting an increase at the September meeting.