The peso closed the session unchanged from Friday’s close, trading around 20.31 pesos per dollar, with the exchange rate touching a minimum of 20.2306 and a maximum of 20.3805 pesos and showing a lateral performance.
In the foreign exchange market, the dollar weighted index lost 0.30%, due to an increase in risk appetite in global financial markets, which strengthened demand for most currencies and gains in capital markets.
This optimism is the result of the publication last Friday of the non-farm payroll of the United States for March, which showed the creation of 916 thousand job positions, significantly exceeding market expectations.
Likewise, in the foreign exchange market, the most appreciated currencies were mainly from emerging economies, with the Peruvian sol advancing 1.35%, the Colombian peso 1.21%, the Czech crown 0.86% and the South African rand 0.78 percent.
In contrast, only three currencies lost ground: the Argentine peso with 0.52%, the Chilean peso with 0.42% and the Indian rupee with 0.26 percent.
In the capital markets, significant gains were observed during the American session, with the Dow Jones advancing 1.13%, the S&P 500 with 1.44% and the Nasdaq with 1.67 percent.
One factor that contributed to the Mexican peso erasing the morning’s gains was a drop in oil prices.
The price of WTI lost 4.34%, trading at 58.78 dollars per barrel, while brent lost 3.99% and closed at 62.27 dollars per barrel.
The downward pressures are due to the decision of OPEC and its allies to allow an increase in oil production by 350 thousand barrels a day in May and June, and another 400 thousand in July.
Coupled with this, there is the expectation that Iran‘s production may increase, especially now that talks with world powers have started in Vienna.
The Islamic republic hopes to find a way to end the sanctions imposed by the Trump administration.
Inflation and Banxico
In Mexico, the market is waiting for relevant economic information, highlighting the gross fixed investment statistics for the month of January that will be published on Wednesday morning, as well as the inflation data for March, which will be published on Thursday and it is expected to be above 4.5 percent.
The minutes of Banco de México‘s latest monetary policy decision will also be published on Thursday, which will be key to assessing the probability of additional adjustments to the interest rate, after it remained unchanged at 4% on March 25. .
In the session, the euro touched a low of 1.1738 and a high of 1.1820 dollars per euro.
Finally, the euro peso touched a minimum of 24.2080 and a maximum of 24.7890 pesos per euro.
At the close, the interbank quotes for sale stood at 20,3080 pesos per dollar, 1.3906 dollars per pound and 1.1811 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.