Mexico's peso on Friday hit its highest level against the dollar since early December 2015, as the greenback lost steam after a slowdown in U.S. inflation bolstered the case for the Federal Reserve to end its interest rate hikes.

MEXICO CITY, July 28 (Reuters) - Mexico’s peso on Friday hit its highest level against the dollar since early December 2015, as the greenback lost steam after a slowdown in U.S. inflation bolstered the case for the Federal Reserve to end its interest rate hikes.

The currency, which has been dubbed the “super peso” in some quarters, including by its most prominent cheerleader, President Andres Manuel Lopez Obrador, strengthened by more than 1.3% in morning trading to 16.63 per dollar.

“What’s happening with the peso right now is due to weakness in the dollar, but also because of optimism surrounding the Mexican peso,” said Banco Base analyst Gabriela Siller.

“And with this international investors keep buying Mexican pesos and it may keep appreciating,” she added.