The Mexican peso rebounds slightly after losing 3.23% in a streak of three falls

The Mexican peso recovered ground moderately this Wednesday, after a streak of three consecutive days with losses. The currency advanced after accumulating a sharp fall, despite the fact that traders remain concerned about the future of the economy.

The exchange rate ended the day at the level of 19.6626 units against a record of 19.7841 units yesterday, with the official data of the Bank of Mexico (Banxico). The Mexican currency recovered 12.15 cents, equivalent to a variation of 0.62 percent.

The cross operated in an open range between a maximum of 19.8321 units and a minimum of 19.6262 units per dollar. The Dollar Index (DXY), which measures the green bill with a basket made up of the six currencies of the G7fell 0.41% to 105.15 units at the close.

The markets showed a mixed behavior after a period of falls due to nervousness in the face of positive figures from the US economy that could predict a rebound in inflationary pressures and an extension of the rate hike period.

In its streak of three consecutive falls, the peso accumulated a loss of 61.85 cents or 3.23%, closing at 19.1656 pesos on Thursday. Traders said the peso’s rally was a break after the move away from the February 2020 lows.

The decline in the dollar was also another factor that supported the peso in the midweek session. “The dollar trades with a negative bias while the currencies of the G-10 and the emerging ones register mixed variations,” explained the Frupo Financiero Barnorte in a report.

In economic figures, weak data released by China offset optimism generated by the easing of the country’s strong restrictions to control new Covid-19 infections and brought volatility to the negotiations.

jose.rivera@eleconomista.mx