The peso appreciates 37 cents against the dollar

The peso closed the session with an appreciation of 1.48% or 36.5 cents, trading around 24.33 pesos per dollar, touching a minimum of 24.2120 pesos.

In the first two days of the week, the peso shows an advance of 2.58% or 64.5 cents, correcting part of the losses observed last week.

The appreciation of the peso occurs on a par with most of the major crosses, given speculation that the economies of Europe and the United States could show an accelerated recovery. This is due to the fiscal stimuli approved between March and April and to the efforts of governments to reestablish the mobility of people.

Petroleum

In the raw materials market, oil prices erased significant losses. The WTI closed with a moderate decline of 0.70%, trading at $ 12.69 per barrel, after hitting a low of $ 10.07 per barrel (20.71% below the close on Monday), while Brent erased a loss of more than 6% to close with a 3.5 percent advance.

This allowed the currencies of emerging economies and commodity-producing countries to rank among the most advanced, such as the Norwegian krone, which appreciated 1.10%, the South African rand, which appreciated 0.80%, and the Chilean peso, which advanced 1.69 percent.

The appreciation of the peso was also driven by the recovery of the Brazilian real, which closed with an advance of 2.35%, trading at 5.52 reais per dollar, ending five sessions of falls. The recovery of the Brazilian real was due in part to the absence of negative news at the political level.

The peso and other currencies

It is important to add that the appreciation of the peso and the Brazilian real have the characteristic of a technical withdrawal, that is, of short-term adjustments in speculative positions against currencies. This movement was also seen in the money market.

In Mexico, the yield on 10-year M bonds decreased by 4.5 basis points to 6.90%, while the yield on dollar issues for the same term decreased 11.5 basis points, at a rate of 4.78%.

In the session, the exchange rate touched a minimum of 24.2120 pesos and a maximum of 24.9000 pesos. The euro-peso reached a minimum of 26.2264 and a maximum of 26.9472 pesos per euro in the interbank prices for sale. For its part, the euro touched a minimum of 1.0810 and a maximum of 1.0888 dollars per euro.

At the close, the interbank quotations for sale were located at 24.3245 pesos per dollar, 1.2433 dollars per pound and at 1.0825 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE