Mexican peso ends week of advance due to weakening of the dollar

The Mexican peso appreciated against the American dollar this Friday. The local currency recovered ground due to a weakening of the greenback, in a market that did not receive great economic figures, which also helped it to close the week in the green.

The exchange rate ended this session at the level of 19.9345 units against a record of 20.0583 units yesterday, with official data from the Bank of Mexico (Banxico). His movement meant a recovery of 12.38 cents, which is equivalent to 0.62 percent.

The cross traded in an open range between a high of 20.1405 units and a low of 19.8860 units, its best level in a month. The Dollar Index (DXY), which compares the dollar to a basket of six benchmark currencies, was up 1% at 111.76 points at the close.

Global markets extended the correction that followed a 14-year high in 10-year Treasury yields. This Friday the rates continued to fall due to bets on lower rate hikes in the United States, according to a press release.

Federal Reserve officials are considering a 50 basis point rate hike in December, and would like to prepare investors for such a decision in the weeks following the FOMC meeting. The Wall Street Journal.

Some operators consulted also attributed the weakening of the United States currency to an advance in the yen, due to expectations that the Japanese authorities intervene in the market to stop the decline of their battered currency.

During the week, the weight also accumulated a moderate gain. From the official close of 20.0788 units, it accumulated an advance of 14.43 cents or 0.71 percent. The Dollar Index accumulated a strong fall of 1.36 percent during the week.

jose.rivera@eleconomista.mx