Concerns about the Fed’s rates persist after retail sales in the United States rose by 0.7% in March, exceeding the 0.3% forecasted by analysts.

The Mexican peso depreciated against the US dollar on the first day of this week. The local currency lost ground due to a strengthening of the greenback amid concerns about the Federal Reserve’s (Fed) interest rates.

The exchange rate ended the session at the level of 16.7246 units per dollar. Compared to a close of 16.6545 units on Friday, according to official data from the Bank of Mexico (Banxico), this meant a loss for the peso of 7.01 cents or 0.42 percent.

The price of the dollar moved in an open range between a high of 16.7455 pesos and a low of 16.5412 units. The Intercontinental Exchange’s Dollar Index (DXY), which measures the greenback against six major currencies, rose 0.14% to 106.19 points.

Today it was announced that retail sales in the United States increased by 0.7% during March, more than the 0.3% forecasted by analysts, further evidence that the world’s largest economy closed the first quarter on solid ground.

The peso continues to extend the depreciation that began almost immediately after reaching a minimum of 16.2559 pesos per dollar midweek, its best level since August 2015, and the strength of the dollar has been the cause.

The dollar’s advance continues to be related to the expectation that the Fed will take even longer to begin cutting interest rates, after retail sales exceeded expectations in March in the United States.