US Treasury bond yields surge on Wednesday, bolstering the dollar, following higher-than-expected prices.

On Wednesday morning, the Mexican peso depreciates against the US dollar. The local currency retreats amid a strengthening greenback following the release of inflation data in the United States that exceeded expectations.

The spot exchange rate stands at the level of 16.4524 units per dollar. Compared to 16.4069 units from yesterday’s official closing of the Bank of Mexico (Banxico), the peso retreats by 4.55 cents, equivalent to a 0.28 percent change.

The dollar price operates within a range between a maximum of 16.4925 units and a minimum level of 16.3043 units. The Dollar Index (DXY), from the Intercontinental Exchange, which measures the greenback against six currencies, was up by 0.75% at 104.93 units.

US Treasury bond yields surge on Wednesday, bolstering the dollar, after Consumer Price Index (CPI) data came in higher than expected in March, complicating the outlook.

The Consumer Price Index increased by 0.4% last month and 3.5% year-on-year, according to data from the Department of Labor. This marks the second consecutive month of acceleration in prices compared to the previous month.

Technically, the exchange rate rises after hitting a new low for the year yesterday, not seen since August 2015. The local currency had touched a zone near 16.25 per dollar following some local inflation data.

Despite the rebound, the Mexican currency retains most of the advance that has surprised traders and analysts in 2024. The market now awaits the release of the Federal Reserve meeting minutes in a few hours.