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MEXICO CITY, May 31 (Reuters) - Mexico's central bank will take into account the exchange rate and the U.S. Federal Reserve's upcoming rates decision when it meets on June 30 to set monetary policy, Central Bank Governor Agustin Carstens said on Tuesday.
U.S. central bank chief Janet Yellen said last week that the Fed should raise interest rates "in the coming months" if the economy picks up as expected and jobs continue to be generated, bolstering the case for a rate increase in June or July.
Speaking at an event in Mexico City, Carstens said expectations about the Fed's June meeting are hitting Mexico's peso, which slid by more than 7 percent this month, its worst monthly drop in four years.
"The Federal Reserve's June 15 decision is specifically affecting [the peso] right now," he said. (Reporting by Michael O'Boyle; Editing by Leslie Adler and Sandra Maler)