The peso closed the session with an appreciation of 1.00% or 19.9 cents, trading around 20.16 pesos per dollar, with the exchange rate touching a minimum of 19.9222 and a maximum of 20.2483 pesos.
In the foreign exchange market, most currencies lost ground during the session, with the dollar-weighted index advancing 0.32 percent.
The strengthening of the dollar is mainly due to an increase in the yield rates of Treasury bonds in the money market, since the 10-year rate reached a maximum of 1.3073% and the 30-year rate a maximum of 2.0933%, levels not seen since February 2021.
The higher rates of return are due to the fact that the market continues to discount the risk of inflationary pressures due to the probable approval of new fiscal stimuli in the United States.
Likewise, in view of the expectation of an accelerated economic recovery, a substitution effect continues to be observed, from the bond market to the capital market, which could continue to reach all-time highs.
The most depreciated currencies during the session were the South African rand with 1.44%, the Mexican peso with 1.00%, the Czech crown with 0.70%, the Colombian peso with 0.56% and the Japanese yen with 0.53 percent.
It should be noted that there was no pattern in the market that was consistent with an increase in risk aversion, as they lost currencies from emerging economies, as well as currencies considered safe havens.
During the first hours of the day, the depreciation of the peso was associated with a greater perception of risk with respect to Mexico, temporarily ranking as the most depreciated currency.
In the next few hours it is not ruled out that the low temperatures in the state of Texas and in northern Mexico will continue to affect the generation of electricity.
So far, production in the Permian area is estimated to have been reduced by about 3 million barrels per day, from the nearly 6 million barrels per day normally produced.
It should be noted that the freezing temperatures have led to a crisis in the US energy sector with blackouts in most of Texas and in states such as Nebraska, Kansas, Missouri, Arkansas and Louisiana.
This is due to its dependence on natural gas, whose production and transmission has also been affected by frost, as gas pipelines have been paralyzed, while refineries in the Texas state have been forced to close and wind turbines have been frozen.
The session was characterized by less liquidity in financial markets and the absence of relevant economic indicators.
It should be added that today, Coneval updated the labor poverty figures for the fourth quarter of 2020.
In 2020, working poverty in Mexico increased 3.4 percentage points from 37.4 to 40.7%, being the second largest increase on record, only below 2008 when it rose 4.2 percentage points.
With this, the number of people who receive a labor income lower than the cost of the food basket is estimated to have risen by 4.7 million people.
As of December 2020, there were 52.7 million people who with their labor income could not buy a basic food basket.
In the session, the euro touched a low of 1.2095 and a high of 1.2169 dollars per euro. Finally, the euro peso touched a minimum of 24.1956 and a maximum of 24.5105 pesos per euro.
At the close, the interbank quotes for sale stood at 20.1640 pesos per dollar, 1.3906 dollars per pound and 1.2107 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.