The Mexican peso depreciated this Monday against the American dollar, swept away by a wave of risk aversion. Russian and Western tensions over Ukraine grow as the market awaits a meeting of the Federal Reserve.
The United States, Australia and the United Kingdom decided to remove the families of their diplomats from Kiev, anticipating a possible invasion by Russia, which has recently mobilized troops and weapons to Ukraine’s borders.
NATO announced that it will increase the presence of its men in Eastern Europe and this alarmed investors, unleashing risk aversion. It is worth mentioning that in Russia they deny any plan to undertake an invasion.
The exchange rate ended the day at 20.6467 units, against a record of 20.4480 units per dollar on Friday, with data from the Bank of Mexico (Banxico). This meant a loss of 19.87 cents or 0.97% for the coin.
The cross traded in an open range between a high of 20.6913 units and a low of 20.4039 units. The Dollar Index (DXY), which measures the greenback against six benchmark currencies, was up 0.29% at 95.92 at the close.
The dollar is gaining ground as a haven asset as geopolitical tensions rise. Traders are also bracing ahead of the Federal Reserve’s monetary policy meeting, which could further tighten its decisions.
In the group of currencies of emerging countries, the losses were widespread and among them that of the Russian ruble was the strongest, with a movement of more than 1.8% in favor of the dollar and a parity located at 78.8655 rubles per greenback.
“Increased geopolitical risk is compounding investor anxiety and dragging down risky assets,” said Craig Erlam, market analyst at OANDA. “It could be a decisive week for the markets,” added the specialist.
jose.rivera@eleconomista.mx
