The peso closed the session with a depreciation of 0.35% or 7.2 cents, trading around 20.58 pesos per dollar, with the exchange rate trading between a minimum of 20.5293 and a maximum of 20.8813 pesos per dollar.
The performance of the exchange rate was divided into two parts:
During Sunday afternoon and overnight, the exchange rate faced upward pressure, reaching a maximum of 20.8813 pesos per dollar, after the president of Turkey fired the governor of the Central Bank, Naci Agbal, who last week decided raise the monetary policy rate by 200 basis points and a total of 875 basis points in the 4 months that its period lasted.
He also appointed a new central bank governor who agrees with Erdogan’s position that higher interest rates lead to higher inflation, contrary to monetary policy. This generated risk aversion with respect to Turkey and caused speculation against the currencies of emerging economies.
In the session, the Turkish lira was the most depreciated currency, losing 7.93%, trading at 7.79 lira per dollar, followed by the Russian ruble that lost 1.10%, the Mexican peso with 0.35% and the Brazilian real with 0.24%.
With the progress of the session and the increase in liquidity in the American session, speculation against the currencies of emerging economies was reduced.
The partial recovery of the peso was also due to a decrease in interest rates in the Treasury bond market.
The yield rate on the 10-year Treasury bonds closed with a decline of 2.8 basis points, standing at 1.69 percent.
Meanwhile, the dollar weighted index closed the session with a decline of 0.09%, the first downward movement since Wednesday, March 17.
It is important to note that, from a technical point of view, the exchange rate stabilized around 20.55 pesos per dollar, which sends a signal of caution to market participants, awaiting the inflation data in Mexico that will be published on Wednesday, as well as Banco de México‘s monetary policy decision scheduled for Thursday at 1:00 p.m.
In the session, the euro touched a low of 1.1872 and a high of 1.1947 dollars per euro. Finally, the euro peso touched a minimum of 24.5138 and a maximum of 24.7876 pesos per euro.
At the closing, interbank prices for sale stood at 20.5778 pesos per dollar, 1.3860 dollars per pound and 1.1935 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.