Peso starts 2023 gaining 0.92%

The Mexican peso accumulates a gain of 0.92% or 17.91 cents against the dollar during the first days of 2022, with which it had its best start to the year in four years.

The exchange rate ended the session at a level of 19.3298 pesos per dollar, appreciating 0.35% or 6.87 cents this Thursday, according to data from Banco de México.

“From a technical perspective, the exchange rate shows a clear downward trend and has tested the level of 19.30 pesos per dollar on two occasions. If it is perforated, the exchange rate could move quickly towards the level of 19.20 pesos per dollar and from there to the minimum in 2022 of 19.04 pesos,” said Gabriela Siller, chief analyst at Banco Base.

Gabriela Siller said that the strength of the Mexican peso is explained by the entry of “dollar flows into the country through exports, remittances, foreign direct investment and surely foreign portfolio investment.”

Among the 20 most traded currencies in the world, the peso is the one that has appreciated the most against the dollar so far this new year, and only one of the four that has gained against the greenback.

The Chinese yuan (0.21%), the Indian rupee (0.15%), and the Hong Kong dollar (0.02%) are the other currencies that also manage to advance against the dollar.

dollar index

Local markets have been resilient in the face of the tide of figures and monetary policy events this week that reinforce the position of central bank authorities in the United States and Mexico in favor of higher interest rates to continue to control inflation.

In the last four days, the peso has accumulated an appreciation of 0.92% or 15 cents, against the dollar.

Earlier in the day, the currency had a limited swing after the minutes of the last Banxico meeting offered little new information on the cycle of interest rate increases.

(With information from Agencies)

sebastian.diaz@eleconomista.mx