Peso advances after US employment data and closes a week of gains

The Mexican peso appreciated against the American dollar this Friday. The local currency advanced due to a decline in the greenback in the market after a labor report was published in USA October better than the market expected.

The exchange rate ended this day at the level of 19.5191 units per dollar compared to a closing of 19.6507 units yesterday, with official data from the Bank of Mexico (Banxico). The peso recovered 13.16 cents during the session, which is equivalent to 0.67 percent.

The cross traded in an open range between a high of 19.6747 units and a low of 19.4596 units, its best reading since May. The Dollar Index (DXY), which measures the dollar against a basket of six major currencies, fell 1.92% to 110.76 points.

“The US labor market remains strong, showing no clear signs of slowing down and showing resilience despite the constant rises in interest rates by the Federal Reserve [Fed]”, explained the firm CI Banco in an analysis note.

Adding to the good spirits of investors was the news that China will soon introduce “substantial” changes in its policy against Covid-19a global outlier that has caused profound damage to the world’s second largest economy.

On the local side, investors are getting ready to learn about the Bank of Mexico’s monetary policy announcement next week. For this decision, which will be announced on Thursday, a new increase of 75 base points is expected in the price of money.

In the week, from a closing of 19.8101 units last Friday, the peso registered a recovery of 29.10 cents, which is equivalent to 1.47 percent.

jose.rivera@eleconomista.mx