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© Reuters. The Mexican peso starts 2022 with a weekly appreciation of 0.68%
Mexico City, Jan 7 (EFE) .- He closed this Friday with a weekly appreciation of 0.68%, trading at 20.37 units per US dollar.
The data implies a weekly appreciation of 14 Mexican cents compared to the exchange rate of 20.51 units of the previous Friday, December 31, reported by the Bank of Mexico (Banxico).
“The peso closed the week with the exchange rate touching a maximum of 20.76 and a minimum of 20.33 pesos per dollar. During most of the week, the exchange rate showed a lateral behavior, trading around 20 , 50 pesos per dollar, observing a brake on the downward trend in December, “Gabriela Siller, director of economic analysis at Banco Base, told EFE.
According to the report shared by Banco Base, the weekly appreciation of the peso was mainly due to two factors: upward pressure on prices due to the difficulty of production in some countries, and the loss of ground for the dollar this Friday in the weighted index , its biggest setback since August 23, 2021.
“The weakness (of the dollar) was due to the publication in the United States of the non-agricultural payroll for December, data that showed the creation of only 199,000 job positions, well below the market’s expectation of 450,000 job positions,” said the analyst.
The Mexican peso, which was around 18.5 units per dollar before the pandemic, suffered its worst moment in March 2020 when it exceeded 25 units.
The Mexican currency closed 2021 with an annual depreciation of 3.01%, trading at 20.51 units per dollar on the last day of the year.
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.
Mexican President Andrés Manuel López Obrador boasted just this week that the Mexican peso has not depreciated against the dollar as his adversaries warned.
“The exchange rate, the currency, the peso, with the pandemic went to more than 25 pesos per dollar and it has already been reduced and we are practically the same as when the government began, there has been no depreciation of the currency,” he declared this Thursday the president.
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