He Mexican peso depreciated slightly against the American dollar in trading this Monday. The local currency fell back after hitting a more than five-year low on Friday in a cautious market awaiting information on monetary policy.
He exchange rate ended this day at a level of 18.0166 units per dollar, with data from the Bank of Mexico (Banxico). Compared with the record of 17.9709 units per dollar on Friday, the local currency fell 4.57 cents, which is equivalent to 0.25 percent.
The cross operated in an open range between a maximum of 18.0450 units and a minimum level of 17.9500 units. The Dollar Index (DXY), which measures the greenback with a basket of the six remaining G7 currencies, fell 0.15% at the close to a level of 104.36 units.
The operators wait for the appearance of the president of the Federal Reserve (Fed), Jerome Powellbefore Congress tomorrow and Wednesday. In his words they will look for clues about the future of interest rates and the next steps in the fight against inflation.
“Markets are awaiting comments from Jerome Powell in this week’s testimony. A more hawkish stance can be expected from the Fed than was expected at the end of last year,” analysts at Masari House of Bag.
Difficulties in maintaining progress
The rise of the peso last week to levels not seen since 2017 cast doubt on the possibility of it maintaining its positive trend. Powell’s testimony and a US jobs report on Friday will be critical to price direction.
“The most relevant resistances are currently positioned at 18.30 and 18.50 units, the resounding decline in levels has left the medium-term moving averages far behind,” said Juan Carlos Cruz, a professor at the Banking and Commercial School.
In the local aspect, this expert recalled, the market’s attention will be focused on the inflation figure for February, which will be key to the next decision by Banco de México, which in its last meeting surprised by raising its key interest rate by 50 basis points.
jose.rivera@eleconomista.mx