© Reuters. The Mexican peso closes at 20.82 per dollar after a second weekly depreciation
Mexico City, Nov 19 (.) .- He closed this Friday with a weekly depreciation of 1.31%, trading at 20.82 units per dollar in the interbank market, thus spinning two weeks of negative trend.
This implies a weekly weight loss of 27 cents compared to the exchange rate of 20.55 units per US bill of the previous Friday, according to data reported by the Bank of Mexico.
“In the exchange market, most currencies lost ground against the dollar, with the peso being the tenth most depreciated currency in the week,” Gabriela Siller, director of economic analysis at Banco Base, told EFE.
During the week, the exchange rate touched a minimum of 20.4707 pesos per dollar and reached a maximum of 20.8894 pesos per dollar, the Banco Base analysis reported.
As a first factor, Siller highlighted the strengthening of the US dollar, which showed a weekly advance of 0.81% with an appreciation for the fourth consecutive week, after which it accumulated an increase of 2.15%.
But the Mexican peso also suffered “a contagion effect from other currencies of emerging economies, mainly the Turkish lira, the Chilean peso and the South African rand,” the Banco Base analyst warned.
In addition, Siller added that the week closes with “a greater perception of risk” due to the rise in COVID-19 infections, especially in Europe, where Austria and Germany have announced containment measures.
The Mexican peso, which was around 18.5 units per dollar before the pandemic, suffered its worst moment in March last year when it exceeded 25 units.
The COVID-19 pandemic crisis caused a historic 8.2% contraction of Mexico’s gross domestic product (GDP) in 2020, the worst crash since the Great Depression of 1932.
Next week will be marked by the publication of economic indicators that will define the end of the year in Mexico.
On Wednesday the inflation reached in the first half of November will be published after it accumulated 6.24% year-on-year in October, its highest level since the end of 2017.
The National Institute of Statistics and Geography (Inegi) will also release the revision of the GDP for the third quarter, after estimating a quarterly contraction of 0.2%.
Other indicators, Siller said, are the balance of payments for the third quarter, Banco de México’s monetary policy minutes and trade figures for October.
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