The peso closed the session with an appreciation of 0.15% or 3.3 cents, trading around 22.13 pesos per dollar, gaining ground along with other currencies of emerging economies, such as the Chilean peso that appreciated 1.46%, the Turkish lira that advanced 1.14%, the Colombian peso with 0.66%, the Indonesian rupiah with 049% and the South African rand that appreciated 0.42 percent.
It should be noted that, also for most emerging economies, there was a higher demand for government debt instruments, probably as a result of a greater preference for more attractive interest rates.
In the case of Mexico, the rate of return on 10-year M bonds showed a decrease of 1.7 basis points to 5.73%, while in Chile the rate of bonds of the same maturity fell 1.3 basis points to 2.47%, due to its In part in Turkey, the rate fell 15.6 basis points to 5.83 percent.
In the rest of the exchange market, most currencies closed with a depreciation against the dollar, with the Brazilian real losing 1.18%, the Swiss franc 1.13%, the pound sterling with 1.04%, the euro with 0.72% and the Japanese yen with 0.62 percent.
This was the result of a strengthening of the dollar after falling for five consecutive sessions. According to the weighted index, the dollar closed with an advance of 0.59%, after falling 1.30% in previous sessions.
The peso and the Fed
The strengthening of the dollar was accentuated after the publication of the monetary policy minutes of the Federal Reserve at 1:00 p.m.
Although the monetary stance is expected to remain highly accommodative due to the risks to economic activity, the majority of Fed officials mentioned that the application of the interest rate curve control, which had been considered in previous months, it would have few results.
They also expressed that there is a risk of excessive growth in the Fed’s balance sheet, which would be difficult to control.
In the session, the peso-dollar reached a minimum of 21.9960 and a maximum of 22.1902 pesos per dollar in interbank prices for sale.
For its part, the euro touched a minimum of 1.1831 and a maximum of 1.1953 dollars per euro.
Indicators of Banxico
Finally, the euro peso touched a minimum of 26.1245 and a maximum of 26.4836 pesos per euro.
At the close, the interbank quotes for sale were 22.1332 pesos per dollar, 1.3098 dollars per pound and 11845 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.