Mexican peso depreciates against the dollar in a day of indecision

The Mexican peso depreciated against the US dollar on Tuesday. The local currency fell in a day of erratic movements, in a market attentive to comments from Federal Reserve officials (Fed), looking for clues about the future of interest rates.

The exchange rate ended this day at the level of 20.0542 units compared to yesterday’s record of 20.0093 units, with official data from the Bank of Mexico (Banxico). That meant a loss of 4.49 cents for the peso, which is equivalent to 0.22 percent.

The crossing operated in a limited range between a maximum of 20.0654 units and a minimum of 19.9588 units. The Dollar Index (DXY), which compares the greenback with a basket of six benchmark strong currencies, was up 0.11% at the close to 112.16 points.

“The Dollar Index advanced due to falls suffered by currencies in Europe last night. The exchange rate was slightly affected, but for now we do not expect a major change in its actions,” hedging fintech Mundi explained in a report.

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The market is also keeping an eye on the local and US quarterly reporting season for signs of the health of the economy. After the market closes, the Mexican giant América Móvil presents its numbers.

jose.rivera@eleconomista.mx