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© Reuters.
By Carjuan Cruz
Investing.com – The fell below 20 per dollar and is down 0.24% to 19.97 per dollar. The exchange rate even fell to 19.93 pesos per dollar.
The currency benefits from better prospects in China regarding the Covid, which could advance the lifting of lockdowns; in addition to the fact that the dollar is weaker, mainly due to the strengthening of the euro in the face of the region’s economic growth above expectations and the greater possibilities that the European Union will raise interest rates.
“The appreciation of the peso is due to the fact that for the third consecutive session a downward correction of the US dollar is observed, which loses 0.71% according to the weighted index and accumulates a decline of 1.37% since the close of last Thursday,” says Gabriela Siller, director of economic and financial analysis at Banco Base.
“The downward correction of the dollar is due to a strengthening of various currencies of advanced economies, mainly the euro, driven by quarterly growth of 0.3%, above the estimated 0.2%, and speculation that the European Central Bank could begin to withdraw its monetary stimuli in the third quarter, and an initial increase in the interest rate in July”, explained Siller.
The situation in China, which reflects a drop in infections and opens the possibility of ending the blockades soon, favors the Mexican peso, which reaches its best price in a month, says Jorge Gordillo, director of economic and stock market analysis at CiBanco.
“Although investors continue to face a difficult scenario, fraught with uncertainties, market confidence has been bolstered as Shanghai achieved the long-awaited milestone of three consecutive days with no new Covid-19 cases outside of the areas. quarantine, which could lead to the beginning of the lifting of restrictions”, explains Gordillo.
However, it warns that there are still concerns that the Chinese economy will be hit intermittently by new restrictions: “These measures affect the global supply chain and put pressure on prices in Western economies.”
The expert estimates that for the rest of the day, the exchange rate could fluctuate between 19.90 per dollar and 20.06 per dollar.
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