English

The peso appreciates against the dollar at 19.87 units

The peso closed the session with an appreciation of 0.44% or 8.69 cents, trading around 19.87 pesos per dollar, with the exchange rate touching a minimum of 19.8493 and a maximum of 19.9934 pesos.

The mexican peso

The appreciation of the peso was due to a combination of factors:

First factor

The US dollar lost ground with the weighted index showing a decline of 0.21%, after a national economic activity indicator from the Chicago Federal Reserve was published in the morning, which in April stood at 0.24 points from 1.71 points in March .

A figure below zero indicates that the economy is growing below its trend, so the market interpreted the publication as a slowdown in economic activity during April.

It is worth mentioning that this data does not normally cause movements in the financial markets.

However, little relevant economic information was released today, contributing to speculation that the Fed could maintain its broadly flexible stance for longer.

Second factor

The prices of several raw materials closed the session with gains, mainly energy.

The WTI closed with a gain of 3.76%, trading at 65.97 dollars a barrel. Therefore, in the foreign exchange market, several of the most appreciated currencies were from countries that produce raw materials.

The Brazilian real appreciated 0.86%, the Norwegian krone 0.70% and the New Zealand dollar 0.61 percent.

One of the reasons why the price of oil rose is because of the news that Iran’s return to the global oil market could be delayed.

Latin America

The two most depreciated currencies in the session were from Latin American economies.

The Peruvian sol lost 1.53%, trading at 3.81 soles per dollar, after the leftist candidate Pedro Castillo advanced in the polls with 53.6% of the preferences before the second round in the presidential elections on June 6.

Likeise, the Chilean peso depreciated 1.53%, trading at 729.5 pesos per dollar, after the local market remained closed in Friday’s session.

Part of the Chilean peso losses may also be associated with polls in Chile where preferences put Communist Party candidate Daniel Jadue at the head with 19.2%. The presidential election in Chile will be on November 21.

In the session, the euro touched a minimum of 1.2173 and a maximum of 1.2230 dollars per euro. For its part, the euro peso touched a minimum of 24.2403 and a maximum of 24.4114 pesos per euro.

At the close, the interbank quotes for sale stood at 19.8674 pesos per dollar, 1.4158 dollars per pound and 1.2216 dollars per euro.

 

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE

 

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