The peso closed the session with an appreciation of 0.31% or 7.1 cents, trading around 20.17 pesos per dollar, with the exchange rate touching a minimum of 20.1441 and a maximum of 20.3171 pesos per dollar.
The appreciation of the peso occurs after the peso depreciated about 2.1% last week, the largest weekly decline since the beginning of March.
In the foreign exchange market, the dollar weighted index registered a decline of 0.33%, as the appetite for risk increased in global financial markets, at the same time that speculation about probable increases in inflation in the United States was reduced.
Most of the peso appreciation occurred from 9:00 am, when the PMI and ISM indices for the month of April were published in the United States.
The manufacturing PMI was located at 60.5 units, solidly in expansion territory, but below market expectations of 60.7 points, spinning 11 months in expansion territory.
For its part, the ISM for manufacturing stood at 60.7 units, being the tenth consecutive month above the expansion threshold of 50 points. This indicator was also below expectations of 65 points.
Both indicators had a positive effect on financial markets in the American session, as they confirm that the United States economy is advancing at a stable rate.
However, by falling below expectations, they moderated speculation on inflationary risks and possible increases in interest rates.
The reduced speculation about inflationary pressures, as well as the weakness of the dollar, were also due in part to comments from US Secretary of the Treasury Janet Yellen, who said in an interview at the weekend that Joe’s economic plan Biden is not inflationary, as its effects will be distributed over a period of eight to ten years.
During the session, the yield rate on the 10-year Treasury bonds showed a decline of 2.6 basis points, standing at 1.59 percent.
It should be noted that the performance of the foreign exchange market was mixed and the appreciation of the peso was moderate, ranking 14th among appreciated currencies.
The most appreciated currencies were the Chilean peso with 0.92%, the Polish zloty with 0.73%, the Czech crown with 0.66% and the pound sterling with 0.61 percent.
In contrast, the most depreciated currency was the Colombian peso, which fell 1.56%, on news that the minister of finance, Alberto Carrasquilla, will present his resignation after the president ordered that his project to raise taxes to stabilize public finances.
During the year, the main Latin American currencies accumulated losses, with the exception of the Chilean peso, which advanced 1.12 percent.
The most depreciated are the Colombian peso with 10.95%, the Argentine peso with 10.60%, the Peruvian sol with 5.48%, the Brazilian real with 4.71% and the Mexican peso with 1.31%.
In the session, the euro touched a low of 1.2013 and a high of 1.2076 dollars per euro. Finally, the euro peso touched a minimum of 24.3007 and a maximum of 24.4869 pesos per euro.
At the close, the interbank quotes for sale stood at 20.1758 pesos per dollar, 1.3906 dollars per pound and 1.2062 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.