Weight regains strength; closes below 20 units per dollar – El Financiero

The Mexican peso is placed around the 19.9 pesos per dollarr, a level not reached since June, after the fifth announcement of monetary policy was made in the year by the Bank of Mexicoin which an increase of 75 basis points for interest rates was announced.

According to data from the Central Bank (Banxico), the exchange rate ended at 19.9612 pesos per dollar, which represents its second consecutive appreciation for the local currency, equivalent to 0.36 percent or 7.19 percent.

The foregoing positions the currency 2.17 percent upto its lowest level it has touched in the year, which was on May 30, where it was placed at 19.5371 pesos per dollar.

“During today’s session, the dollar reached a new low against the peso, trading at 19.90 units. The national currency remains close to this level, pressured by Banxico’s monetary policy decision and with a weaker dollar”, Octa FX specialists highlighted.

“The decline in inflation reduced expectations of a further tightening by the Federal Reserve, even so, the markets anticipate an increase of 50bp in the next meeting in September. At this juncture, the US dollar remains under pressure. The US currency maintains losses, unable to recover ground on a sustained basis, even as US bond yields soar”, they added.

Regarding today’s close, the Mexican currency reflects an accumulated advance in the year of 2.72 percent, in addition, throughout the session this Thursday, the peso moved in a range of 20.0489 and 19.9021 pesos per greenback.

The dollar index (dxy), which measures the strength of the United States currency, against a basket made up of six currencies of developed countries, stands at 105.12 points, reflecting a drop of 0.07 percent.

In the case of the Bloomberg dollar index (bbdxy), the fall is 0.11 percent, at a level of 1,257.65 units.

The yield of the 10-year M bond in Mexico remains at a rate of 8.75 percent, while the 10-year bond in the United States increases 0.092 base points, to a level of 2.87 percent.

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