Peso falls more than 1% due to strength of employment in the United States

The Mexican peso backed hard against him American dollar on Friday. The local currency lost ground hit by a wave of aversion to risky assets in the markets after the publication of a positive report on the labor market in USA.

The report of non-farm payrolls It showed that US employers added 263,000 jobs in November, more than expected. The figure could complicate the intention of the Federal Reserve to moderate the rate of rise in interest rates.

The exchange rate ended the day at the level of 19.4196 units compared to a record of 19.1656 units yesterday, with official data from the Bank of Mexico (Banxico). That meant a negative movement for the local currency of 25.40 cents or 1.33 percent.

The crossing operated in a limited range between a maximum of 19.4444 units and a minimum of 19.1082 units. The Dollar Index (DXY), which measures the greenback against a basket of six strong reference currencies, gave up 0.20% at the close at a level of 104.52 points.

The depreciation of the peso was due to a general strengthening of the dollar, whose weighted index came to gain 0.22% due to the expectation that the Federal Reserve it will continue to raise its interest rate in 2023, Banco Base stated in a note to clients.

Just on Wednesday, the market was treated to a speech by Jerome Powell, Fed Chairman, who mentioned that the central bank could begin to moderate the pace of raising the reference rate. The drop in inflation published yesterday supported this expectation.

The employment figures in the United States also led the peso to negative during the week, since last Friday it closed at 19.3145 units, which means a loss of 10.51 cents or 0.54 percent. The Dollar Index accumulated a fall of 1.44 percent.

jose.rivera@eleconomista.mx