Dollar keeps gaining on peso; peso fell 4% in October
The Mexican peso closed October down about 4 percent against the US dollar, extending its losing streak to eight consecutive weeks. The currency finished the month at 18.80 pesos per dollar, according to Banco de Mexico, down 72 centavos since September. Analysts note the streak is the longest since 2016, and only the Brazilian real fell more among major currencies in October. Investors are unwinding carry trades as the interest rate gap between Mexico and the United States narrows. Markets also expect the US Federal Reserve could raise its rate by a quarter point after US consumer inflation accelerated to 3.74 percent a year. Speculative bets on a stronger peso on the Chicago futures market rose for a third straight week. The next key test comes Thursday, November 5, when Banco de Mexico announces its interest rate decision.