Tuesday , September 27 2022

Peso punished after US elections


MEXICO CITY. – The peso exchange rate with dollar got into the field of "brain", characterized by profit making and such fears of the new one American Congress

The Mexican Bank reported that interbank dollar this Wednesday closed at 19.8960 units. On a daily basis, the peso resigned at 10.90 cents, similar to 0.55 percent.

The gold price in the Bank window is sold at 20.20 units higher than 20.05, reports Tuesday when Citibanamex closes.

The currency exchange rate of the peso against the dollar reached at least 19.5766 units, the morning confirmed the election trends in the United States a new balance of power in the congress, then bounce back to 19,903 units, mainly due to profit, the accumulated strong profits in the previous days.

The Mexican peso has fallen this Wednesday for three consecutive sessions, reaching 2.53 percent.

During the day, weight loss meant that he had to take on as currency with worst performance which is the most talked-about worldwide, according to Bloomberg.

The second and third places were for the Turkish lira and the Argentine peso, falling by 0.14 and 0.12 percent in each case.

On the one hand, Mexican peso This was supported by the loss of strength of the dollar as it would have a lower maneuvering margin Donald Trump when he lost control of the party over the House of Representatives.

On the other hand, stock market participants were cautious about the possibility that Democrats could gain strength, could delay the recent business agreement reachable between the United States, Mexico and Canada.

Despite the election results, Donald Trump He continued to insist on the construction of a border wall with Mexico, making sure the negotiations with the Democrats of Congress were successful, thus avoiding the closure of government in December.

"I talk to Democrats all the time, and they agree that a wall is needed," said Donald Trump.

The index measuring the dollar's performance against the ten basket of currencies is down 0.14 percent.

Potentially less expansionary fiscal policy helps to reduce concerns about higher inflation, which reduces the Federal Reserve System can accelerate the increase in the reference rate.

Dollar demand is also negatively affected by US bond yields.

Reference document 10 year bonus reports a reduction of 0.02 percentage points to 3.2 percent.

The other front was a negative behavior oil market, a situation that contributed to the profitability of the Mexican currency.

Western European crude oil price is 1.08 percent to 61.57 dollars per barrel, while the Brent rate is 0.08 percent to 72.11 dollars.

The domestic market stands out that in an auction to extend the foreign currency hedge maturity, in the 29 days demand was 700 million dollars, which is 3.50 times the 200 million proposed.

The exchange rate resistance is 20.50 units. Meanwhile, the support is 19.50 pesos in the wholesale market.

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