The peso closed the session with little change compared to Friday’s closing, showing a minimum depreciation of 0.01% and trading around 20.09 pesos per dollar.
In the session, the exchange rate touched a low of 20.0760 and a high of 20.24502 pesos per dollar, with the peso erasing most of its losses due to a weakening of the dollar as the session progressed.
At the close, the dollar weighted index showed a 0.12 percent decline.
The weakness of the dollar was due to the fact that the appetite for risk in global financial markets rose in the session, driven by 1) the expectation of new fiscal stimuli in the United States and 2) the progress in some countries of the vaccination process against the coronavirus, which has occurred alongside a decrease in infection rates.
Capital markets closed the session with strong gains, such as the Dow Jones which advanced 0.76% and the S&P 500 with 0.74%, both reaching new all-time highs.
In Mexico, the IPC of the Mexican Stock Exchange registered a gain of 0.12 percent.
Significant gains were also observed in the commodities market, with the WTI price showing an increase of 2.04% and trading around $ 58.01 per barrel, hitting a new high since January 2020.
It is important to note that, during the session, the Ministry of Finance announced in a statement a strategy to expand access to financial services for migrants so that they can send dollars from the United States through the Banco del Bienestar. It is highlighted that the program contemplates that the Banco de Bienestar buy dollars in cash from migrants and their families.
Another relevant point is that Banco de México will provide facilities to credit institutions that cannot repatriate dollars in cash, through “guaranteed contingent financing”, the terms and conditions of which are not specified in the statement.
Therefore, for now it is not clear how the measures will influence the operation of Banco de México or the consequences for Banco del Bienestar of acquiring dollars in cash.
In the session, the euro touched a low of 1.2020 and a high of 1.2066 dollars per euro. Finally, the euro peso touched a minimum of 24.1724 and a maximum of 24.3516 pesos per euro.
At the close, the interbank prices for sale were located at 20.0920 pesos per dollar, 1.3740 dollars per pound and 1.2049 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.