The third Mexican peso operated with a slight loss early on Wednesday, its consecutive daily decline, while the markets kept a series of comments on monetary policy from authorities of the United States Federal Reserve and a local inflation data that will be known this week.
dollar to peso exchange rate
At the opening of markets on Wednesday, the Mexican peso was trading at 20.1260 per dollar, down 0.04% marginally from the Reuters benchmark price on Tuesday.
Later, the peso reached a better price, when the dollar was sold at 20.0979 pesos per unit, according to Bloomberg. A gain of 0.23% in relation to the closing price of Tuesday registered by the Bank of Mexico, when each dollar was sold at 20.1448 pesos.
The currency suffered a drop of more than 0.70% the previous day, but still traded within its 100-day moving average, as traders were cautious due to the expectation of more restrictive monetary conditions in the world’s large economies that weigh on emerging markets.
A note from Banorte analysts sent to clients who highlighted that the peso is one of the few currencies in the region that on Wednesday proved resistant to the upward march of the dollar index generated by refugee searches.
Investors are following economic data from abroad with concern, after figures for China’s trade balance were published in the early hours that were below expectations.
The strengthening of the dollar, according to Banco Base, is due to some factors such as the expectation that in the United States the Federal Reserve will continue to raise its interest rate aggressively by 75 basis points on September 21. This is due to the recent publication of some positive economic indicators for the United States, specifically the creation of 315,000 job positions in August at the end of last week.”
In addition, the United States released figures for its July trade deficit above market forecasts and “there are signs of an economic slowdown in China.”
With information from Reuters, Bloomberg and Banco de México.
