MEXICO CITY, July 23 (Reuters) - Mexico’s Central Bank Governor Agustin Carstens said on Thursday conditions should improve for the peso currency once market turbulence over possible rate increases by the U.S. Federal Reserve bank has receded.
“This will even take us to a scenerio that in the end should favour the peso because the Federal Reserve would be tightening its monetary policy due to the belief that the U.S. economic recovery is strengthening,” he told Mexican radio.
The Mexican peso has hit record lows against the dollar in recent weeks. Analysts polled by Reuters said they expected the U.S. central bank to raise interest rates in September. (Reporting by Mexico City Newsroom)