FXStreet (Córdoba) - The Mexican peso is falling modestly against the US dollar on Monday with USD/MXN hovering around 18.50, far from the record high it reached last week. Last Thursday's the US dollar climbed to 18.80 setting a new all-time high. On Friday, the pair corrected to the downside, amid a recovery in stocks and in crude oil prices. The pair bottomed at 18.36. Today is rebounding on a quiet session. It peaked during the European session at 18.59 and then pulled back. It has been trading between 18.53 and 18.45 during the last hours. Carstens: Overreaction in the exchange market The governor of the Bank of Mexico, Agustín Carstens, said to the WSJ, that the currency is undervalued and headed toward a correction. According to him, there was an overreaction and he expected a major correction. Carstens explained that he intends to follow Federal Reserve moves regarding interest rates. On December, the central bank rose rates after the Fed, despite the fact that inflation in Mexico is at a record low. While the FOMC will announce its decision on Wednesday, the central bank of Mexico will have its meeting February 4. It is expected to leave rates unchanged if the Fed, as widely expected, does the same in two days. For more information, read our latest forex news.