The peso closed the session with a depreciation of 0.46% or 9.2 cents, trading around 19.86 pesos per dollar, as a weakening of most currencies was observed against the dollar, which led the weighted index of the US dollar to advance 0.15%, its first daily increase since Monday, November 30.
The main determinant of the depreciation of the peso was an adjustment of positions after the exchange rate hit a low of 19.7399 pesos per dollar last Friday, initiating a consolidation process below the resistance of 20.00 pesos per dollar.
Other factors that contributed to the corrective movement in the foreign exchange market were:
- The resurgence of political tensions between China and the United States, given the possibility that the Trump administration will implement sanctions against Chinese officials for their intervention in the Hong Kong Parliament.
- The uncertainty about the future of the commercial relationship between the United Kingdom and the European Union, as there is a risk that negotiations will break down without reaching a commercial agreement in the short term.
- The coronavirus pandemic continues to be a threat to economic activity. In Los Angeles, United States, a new record of daily infections was reported by registering 10,528 cases in the last 24 hours. In addition, the number of hospitalizations is at a maximum of 2,855 and it is estimated that one in four patients is in intensive care. In France, the curve for new Covid19 infections is no longer falling and the average number of daily cases has remained between 10 and 11 thousand in the last six days.
The peso and oil
In the commodities market, oil prices closed lower, with the WTI losing 1.21% and trading at 45.70 dollars per barrel. However, this did not have a negative effect on the currencies of oil- or commodity-producing countries, most of which closed with gains.
In the session, the exchange rate touched a minimum of 19.7667 and a maximum of 19.9785 pesos per dollar, the euro touched a minimum of 1.2079 and a maximum of 1.2166 dollars per euro. Finally, the euro peso touched a minimum of 23.9588 and a maximum of 24.1332 pesos per euro.
At the close, interbank prices for sale stood at 19.8590 pesos per dollar, 1.3384 dollars per pound and 1.2113 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.