The possibility of a world economic recession, as a consequence of greater monetary restrictions, is perceived as one of the main causes of the depreciation of the Mexican currency.
dollar to peso exchange rate today
The Mexican peso was trading at 20.1637 per dollar, according to Bloomberg data, which means a loss of 0.05% compared to the 20.1553 pesos of the reference price of the Bank of Mexico on Tuesday.
The depreciation of the peso for the second consecutive session is due to the fact that the market continues to assess the possibility of a global economic slowdown in the coming months, as a result of a more restrictive monetary stance by the main central banks, the Base Bank estimated.
This has caused an increase in risk aversion, raising the demand for dollars in the foreign exchange market.
The dollar index, which measures the greenback's performance against a basket of six currencies, rose 0.3% to 109.10, near a two-decade high hit on Monday at 109.48. The index is headed for its third straight month of gains, having risen more than 3% in August.
Market attention is focused on US Non-Farm Payrolls data due out on Friday, and Tuesday's job openings data could herald a good outcome in the week-end report, which would reinforce the case for more aggressive rate hikes.
With information from Reuters, Bloomberg and Banco de México.
