Mexican peso closes the week with a gain of 2.03%

The Mexican peso closed a week of gains against the dollar that Friday. The currency extended its movement through the zone below 19 pesos in a volatile session in which a solid report on the perception of the US economy was published.

The exchange rate ended this day at the level of 18.7699 units against a close of 19.1580 units per dollar last week, with data from the Bank of Mexico (Banxico). This meant a cumulative gain of 38.81 cents or 2.03 percent.

The improvement in expectations for the economy is reflected in the peso, which benefits from the weakening of the dollar due to the bets on lower rate hikes from the Federal Reserve (Fed), after knowing yesterday a decrease in inflation in the United States.

“Lower inflation and better economic expectations reduce the risk of recession in the United States,” local bank Banco Base said. “Bet is strengthened that the Fed will reduce the pace of interest rate hikes in its February decision,” he added.

Against a close of 18.8476 pesos yesterday, the currency recovered 7.77 cents or 0.41 percent. Since its official closing of 2022, of 19.5089 units, the peso adds an advance of 73.90 cents, which is equivalent to a variation of 3.79 percent.

During the week, the cross operated in a limited range between a maximum of 19.1947 units and a minimum of 18.7334 units, a level not seen since February 16. The Dollar Index (DXY), which measures the strength of the greenback, fell 1.62% to 102.19 points.

jose.rivera@eleconomista.mx