Mexican peso closes a positive day and advances in the week

The Mexican peso was valued against the American dollar this Friday. The local currency advanced in a day of reduced activity due to the early closing of the financial markets in USA debido al Black Friday.

The exchange rate ended the day at the level of 19.3145 units compared to a close of 19.3857 units yesterday, with official data from the Bank of Mexico (Banxico). The move meant a gain of 7.12 cents, or 0.37 percent.

The pair operated in a limited range between a maximum of 19.4209 units and a minimum of 19.3096 units. The Dollar Index (DXY), which measures the greenback with a basket of six reference currencies, rose 0.13% to 105.96 units.

Despite the advance of the dollar in the market, the global reference currency remains close to the lows of several months due to the possibility that the Federal Reserve moderate the magnitude of interest rate increases.

In the local aspect, investors assimilated a report that showed that the economic activity grew between July and September slightly less than what had been estimated, although it linked its fourth consecutive quarter of expansion.

“The exchange rate registered movements of high volatility and sensitivity to some economic data in Mexico and the expectations of Banxico’s monetary policy,” Masari Casa de Bolsa explained in an analysis note.

Minutes from the Fed’s November meeting, released on Wednesday, showed the central bank believes it would soon be appropriate to slow the pace of interest rate hikes due to lower inflationary pressure.

During the week, against a record of 19.4354 units last Friday, the peso gained 12.09 cents, equivalent to 0.62 percent. Although it advanced in the day, the index that measures the dollar accumulated a fall of 0.9 percent during the week.

jose.rivera@eleconomista.mx