U.S. lenders Silicon Valley Bank (SVB) and Signature Bank went under last week, with
the government stepping in to stop a domino effect from toppling other banks.
"Everything seems to indicate there will be no major effects from SVB and the markets will recover optimism, however, it will be key to evaluate information coming in over the next few days," analysts at Monex Grupo Financiero wrote.
Consumer prices in the United States rose 0.4% in February after advancing 0.5% in January, the Labor Department reported Tuesday. Economists say monthly inflation is rising at double the rate needed to rein inflation back to the Fed's 2% target. "Investors have different views on what decisions the Fed will take after lower-than-expected inflation," Monex analysts added.
From last Wednesday to Monday, the peso had depreciated more than 5% versus the dollar, which analysts say was a correction from the previous week after briefly breaking the
18.00 pesos per dollar barrier for the first time in almost five years.
Going forward, the peso is likely to hover between the
18.50 to 19.00 per dollar range, analysts at MetAnalisis said.
(Reporting by Noe Torres and Kylie Madry, editing by Ed Osmond)
