Peso depreciates due to advance of the dollar due to little clarity of the result of the US elections

The Mexican peso depreciated against American dollar this Wednesday. The local currency fell on a strengthening of the greenback in a market that assimilated the close mid-term elections in the United States and awaited economic data.

The exchange rate ended at the level of 19.6032 units against a record of 19.5356 units per dollar yesterday, with official data from the Bank of Mexico (Banxico). This meant a fall of 6.76 cents for the peso, equivalent to a variation of 0.34 percent.

The crossing operated in a limited range with a maximum of 19.6350 units and a minimum of 19.5087 pesos. The Dollar Index (DXY), which compares the greenback to a basket of six major benchmark currencies, was up 0.77% at 110.48 points at the close.

Investors remained cautious as the US midterm elections were less clear-cut than expected. Republicans were widely expected to win, but Democrats performed better than expected.

The US dollar recovered ground in the market as the result of the US mid-term elections was less clear than expected and could take until December, Grupo Financiero Banorte said in an early note.

On the local side, investors learned earlier of local inflation data in October that was lower than expected, prior to the monetary policy announcement that Banxico will make tomorrow and before the inflation data from the United States, fundamental for the Fed.

jose.rivera@eleconomista.mx