Peso appreciates in erratic market after US data

The Mexican peso regained ground against American dollar this Thursday. The local currency advanced after two consecutive days with losses, in a market without direction after the release of figures from the United States economy which gave mixed signals.

The exchange rate ended this day at the level of 20.0583 units compared to the record of 20.1208 units yesterday Bank of Mexico (Banxico). This movement meant a gain of 6.25 cents for the peso, equivalent to a variation of 0.31 percent.

The cross traded in an open range between a high of 20.1589 units and a low of 20.0215 units. The Dollar Index (DXY), which measures the greenback against a basket of six major benchmark currencies, was down a marginal 0.06% at 112.91 points at the close.

“Uncertainty remains very present,” CI Banco said in a note. “Especially given concerns that central banks will continue to tighten their monetary policy strongly with the imminent risk of recession that this implies,” the report added.

In the United States, figures were published for the manufacturing sector and a decrease in new applications for subsidies for the unemployed in the United States. The figure of 214,000 was less than the estimate of 230,000 and the previous figure of 226,000 records.

While the number of Americans applying for unemployment aid unexpectedly fell last week, the figures showed that home sales fell in September and the manufacturing sector performed weakly in October.

Analysts also said investors were eyeing the resignation of British Prime Minister Liz Truss after six weeks in office, brought down by an economic program that rattled financial markets last month.

“Although the dollar was affected by the bad numbers in the housing sector, it remains the preferred safe haven asset in the current complex scenario, with news such as the resignation of the British Prime Minister,” Fintech Mundi explained in a note.

jose.rivera@eleconomista.mx