The peso loses against the dollar: it is trading at 20.05 units

The peso closed the session with a depreciation of 0.91% or 18.2 cents, trading around 20.05 pesos per dollar, with the exchange rate touching a minimum of 19.8534 and a maximum of 20.0726 pesos.

With today’s depreciation, mexican currency accumulates a loss of 1.16% or 22.9 cents in the first two sessions of the week.

In the session, the Mexican peso was the second most depreciated currency, behind the Colombian peso that lost 1.70% and followed by the South African rand that lost 0.65 percent.

The peso

The depreciation of the peso was due to a combination of two factors:

First factor

The dollar gained ground against most of its main crosses, with the weighted index advancing 0.21%, in anticipation of the Federal Reserve‘s monetary policy announcement scheduled for tomorrow at 1:00 p.m.

The strengthening of the dollar occurred alongside a 5.5 basis point increase in the yield rate on 10-year Treasury bonds to a level of 1.62%, the highest daily increase since March 18.

It should be remembered that interest rates have risen in previous weeks due to speculation that a broadly flexible monetary stance for a prolonged period of time increases the risk of inflationary pressures in the United States.

Second factor

For the second consecutive session, the peso lost along with a Latin American currency, now the Colombian peso lost 1.70%, accumulating a decline of 2.04% in the week.

The depreciation of the Colombian peso is due to the fact that in Congress there is little popularity for a tax reform that seeks to raise taxes in order to avoid a deterioration in debt and cuts to the credit rating.

It should be remembered that yesterday the Peruvian sol depreciated due to the political uncertainty prior to the second round of the presidential elections on June 6, which also caused a depreciation of the Mexican peso.

Other currencies

In the session, the euro touched a low of 1.2057 and a high of 1.2093 dollars per euro.

Finally, the euro peso touched a minimum of 23.9892 and a maximum of 24.2608 pesos per euro.

At the close, interbank quotes for sale were 20.0530 pesos per dollar, 1.3914 dollars per pound and 1.2091 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE