Peso is trading at 18.98 units for the first time since February 2020

The peso-dollar exchange rate is trading at a level of 18.9821 pesos per greenback at 11:55 in the morning on Wednesday, January 11, falling below 19 units per dollar for the first time since February 2020.

“The peso is appreciating and it is likely that the exchange rate will continue to fall in the short term, but all the indicators (fundamental and technical) point to a high probability of a rebound in the medium term,” he anticipated. Gabriela Sillerdirector of Economic Analysis at Banco Base in a message on Twitter.

The specialist mentioned in an analysis that the exchange rate has tried to break the support of 19.04 pesos per dollar at various times, but has not succeeded, since the market is waiting for the data to be published tomorrow, Thursday. US inflation from December.

“If the market takes the publication as good news that confirms the downward trend in inflation, the exchange rate could move towards 18.94 pesos per dollar. On the contrary, if the market considers the publication as negative, the exchange rate it can rebound, removing the possibility of exchange rate levels below 19.00 pesos per dollar,” he projected.

The appreciation of the peso against the dollar, said Gabriela Siller, is related to the optimism that “the light is beginning to be seen at the end of the road with high inflation in the United States and the rise in interest rates,” which implies that the Fed will not have to be as aggressive in hikes this year.