Mexican peso extends its advance on the second day of 2023

The Mexican peso was valued against the American dollar this Tuesday, for the second consecutive session. The local currency extended its advance with one of the best performances among the currencies in the region, despite the strengthening of the dollar against its main peers.

The exchange rate ended this day at the level of 19.3861 units compared to a record of 19.4753 units yesterday, with official data from the Bank of Mexico (Banxico). The movement left a gain of 10.72 cents for the peso, which is equivalent to 0.55 percent.

The crossing operated in an open range with a maximum of 19.5359 units and a minimum level of 19.3756 units. The Dollar Index (DXY), which compares the greenback with a basket of six strong reference currencies, rose 0.97% at the close to a level of 104.52 points.

“The Mexican peso erases the loss that was observed during the early morning (Tuesday) and positioned itself within the currencies of emerging countries that show higher gains against the dollar,” Monex analysts said in a note sent to clients.

The peso has held up over the week to swings in global markets, prompting bets on higher US interest rates, recession fears and weaker-than-expected Chinese manufacturing numbers.

Traders will be watching this week for the December jobs report to be released by the US government and the minutes of its central bank meeting. To these reports will be added the minutes of the December meeting of the Bank of Mexico.

jose.rivera@eleconomista.mx