The peso closed the session with a depreciation of 0.71% or 14.3 cents, trading around 20.03 pesos per dollar, ranking as the third most depreciated currency in the basket of main crosses, behind the Turkish lira, which was the most depreciated currency and the pound sterling which came in second.
Unlike other markets, the foreign exchange market did not observe a greater perception of risk at the global level, so the losses in these currencies are mainly due to factors in each country.
The Turkish lira depreciated 0.85% and closed at 7.89 lira to the dollar, on speculation that the United States will likely announce sanctions against the country after it acquired a Russian defense system.
Furthermore, European Union countries are likely to impose sanctions that could include a ban on transactions between European and Turkish companies, in response to Turkey’s maritime activity in the Mediterranean Sea.
During the week, the Turkish lira is the second most depreciated currency, accumulating a decline of 1.16 percent.
The pound sterling depreciated 0.81%, trading at 1.3291 dollars per pound, given the stagnation of negotiations between the United Kingdom and the European Commission.
After having several meetings this week with the president of the European Commission, the prime minister of the United Kingdom warned that the country will have to prepare to leave the Union without a trade agreement.
During the week, the pound sterling is the third most depreciated currency in the wide basket of main crosses, accumulating a decline of 1.12 percent.
The Mexican peso depreciated 0.72%, with the exchange rate reaching a maximum of 20.0476 pesos per dollar.
The depreciation of the peso was the result of an increase in the perception of risk with respect to Mexico, after yesterday the Senate approved the reform of the Bank of Mexico Law regarding the capture of foreign currency in cash.
This despite the fact that the Bank of Mexico itself warned about the risks of said reform. The reaction of the exchange rate is clear, although the depreciation is moderate since the market is not clear about the effects of the reform in the long term.
Indicators of Banxico
If the reform is approved in the Chamber of Deputies, the executive has already said that it will accept that decision, so the exchange rate could show additional depreciations, not only in the short term, but in the long term if the economy is affected. reputation of the Bank of Mexico.
In the wide basket of main crosses, the Mexican peso has been the most depreciated currency so far this week, accumulating a decline of 1.33% or 26.3 cents.
The peso and other currencies
In the foreign exchange market, the dollar weakened against most currencies, with the weighted index showing a decline of 0.16%, the first since last Friday.
The appreciation of the Brazilian real from 2.89% to 5.02 reais per dollar stood out, after the Central Bank of Brazil kept the interest rate unchanged at 2% and warned of inflationary pressures, eliminating speculation of additional cuts and raising the probability of rate increases in 2021.
There are still factors that could generate volatility in global markets, mainly the lack of an agreement between Republicans and Democrats for the approval of fiscal stimuli before the end of the year, as the House of Representatives ends its session on December 18. .
For its part, while the pandemic continues to advance in the United States, employment data show a clear deterioration.
The US Department of Labor Statistics reported this morning that during the week ending December 5, the government received 853,000 new applications for unemployment support, above the 725,000 expected by the market.
Likewise, continuous requests, from those people who are already receiving support or who continue to wait, increased from 5,527 to 5,757 million.
In the session, the exchange rate touched a minimum of 19.8204 and a maximum of 20.0476 pesos per dollar, the euro touched a minimum of 1.2076 and a maximum of 1.2159 dollars per euro. Finally, the euro peso touched a minimum of 23.8836 and a maximum of 24.1220 pesos per euro.
At the close, interbank prices for sale were 20.0280 pesos per dollar, 1.3291 dollars per pound and 1.2138 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.