Tuesday , March 21 2023

Dollar breaks are 19 peso floors


Mexico City. – Treasury Secretary Carlos Urzúa's forecast is fulfilled: the dollar broke the 19 peso floor.

Early in the week Mexican Peso recorded positive behavior, mainly supported by the weak dollar at international level, which has allowed it to successfully deal with the concerns and tensions caused by Distribution problem internal fuel

The interbank dollars based on data published by the Bank of Mexico 18,9865 units were closed at least after October 17, 2018. The day of the peso developed 15.35 cents, similar to 0.80 percent.

In the bank window green is sold for 19.30 units, which is less than 19.45, which was reported on Friday, as concluded by Citibanamex.

Exchange rate weight with the dollar the number of units affected by the retail market on Monday was 19,1955, and 18,961 units were reported on the retail market.

According to Bloomberg, the Mexican Peso was placed as the best currency in the world on Monday.

In an interview with Bloomberg last week, first responsible Carlos Urzúa predicted that the short-term green step would drop to 19 pesos.

"There have been several events that have caused the exchange rate slightly, internally and externally, and now we see a rally in favor of more or less important weight, and the peso could reach level 19, and even with good luck less than 19 pesos per dollar , ”Said Urzúa.

It should be noted that Mexican currency it has seven sessions in a positive area, accumulating 3.07 percent, suggesting that it is resistant to tension and fears of fighting fuel theft.

The main driver of the Mexican peso recovery was Monday The weakness of the dollar international market.

The index, which measures the rate of return on a basket of ten currencies, decreases by 0.18 percent.

In the external context, the state of defense was dominated by weaknesses external sector in China Long-term partial closure of the North American government.

Asian giant exports and imports fell by 4.4 and 7.6% in December last year, causing concern over global economic growth.

On the other hand, the weakness of the Chinese export industry was also negatively affected raw material prices, especially oil.

This situation limited the potential for Mexican currency appreciation.

West Texas crude oil price drops by 1.24 percent to $ 50.94 per barrel, while the Brent rate is $ 1.77 to $ 59.42.

Internally, this is due to the need to renew the auction period exchange of risk hedgingwith 59-day maturity, demand was $ 1 billion, five times higher than the 200 million offered.

The exchange rate broke the support on 19 units on Monday, which, if confirmed in the coming days, would be the next 18.70 units in the wholesale market. While the resistance is 19,70 units.

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