English

The peso gains against the dollar: it is trading at 20.04

The peso closed the session with an appreciation of 0.67% or 12.5 cents, trading around 20.04 pesos per dollar, erasing the losses from Monday’s session.

In the foreign exchange market, most of the currencies closed with an appreciation against the dollar, with the peso ranking as the sixteenth most appreciated currency in the wide basket of main crosses.

The three most appreciated currencies were the Brazilian real with an advance of 2.70%, the Polish zloty with an appreciation of 1.99% and the Hungarian forint, with 1.80 percent.

In the particular case of the Brazilian real, the appreciation is due to the comments of the president of Brazil, Jair Bolsonaro, who said that he does not plan to expand the aid packages for informal workers starting in 2021, which reduces the risk of further deterioration. of the fiscal position of the country.

For the other currencies, the appreciation was the result of a general weakening of the US dollar, which lost 0.72% according to the weighted index, hitting a new low since April 23, 2018.

It should be added that today the dollar’s biggest daily fall was observed since November 5.

The peso

The weakness of the dollar is mainly due to two factors:

First factor

In the United States, a group of lawmakers from both parties (Republicans and Democrats) proposed a stimulus package of $ 908 billion with the aim of restarting the negotiation process that has been stalled since August.

Although this proposal has not received the endorsement of leaders in the Senate or the House of Representatives, the issue of a new stimulus package is once again at the center of attention for the financial markets.

For now, the best probability is that a new package will be approved the following year, with the change of federal administration and with the beginning of a new legislature from January.

Second factor

Optimism continues regarding the likely availability of a Covid19 vaccine in the coming weeks.

During the morning it was announced that Pfizer and BioNTech have requested authorization for the distribution of their vaccine in the European Union and have indicated that the distribution could begin immediately.

It is important to mention that, in the particular case of the euro, the price reached a maximum of 1.2077 dollars, its highest level since May 1, 2018.

The oil

Market confidence was also evident in the capital markets, where most indices globally posted gains of close to 1 percent.

In the United States, the S&P 500 advanced 1.13% and stood at 3,662.45 points, touching a new all-time high of 3,678.45 points. The Dow Jones did not reach a new all-time high, but managed to close with a 0.63% gain at 29,823.91 points.

For its part, in Mexico the CPI of the Mexican Stock Exchange closed with a gain of 2.67%, standing at 42,895.63 units, its maximum closing level since March 4.

In the commodities market, the prices of the main oil blends closed the first session of December with losses, due to the decision of OPEC and its allies (OPEC +) to delay their meeting for two days, so they have not yet been defines whether cuts to oil production will continue at the beginning of 2021.

The WTI closed the session trading at 44.60 dollars per barrel, which is equivalent to a contraction of 1.63% in its price, while the price of Brent fell 0.94% and is trading at 47.43 dollars per barrel.

Other currencies

In the session, the exchange rate touched a minimum of 19.9880 and a maximum of 20.2004 pesos, the euro touched a minimum of 1.1927 and a maximum of 1.2077 dollars per euro. Finally, the euro peso touched a minimum of 24.0132 and a maximum of 24.2163 pesos per euro.

At the end of the year, interbank prices for sale were 20.0410 pesos per dollar, 1.3425 dollars per pound and 1.2070 dollars per euro.

 

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE

 

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