The peso falls against the dollar in an erratic day

The mexican peso broke with his positive streak this Tuesday, to close with setbacks against the dollar in a session with an erratic market due to low business volume and after a holiday in the United States for the Christmas celebrations.

The exchange rate ended at the level of 19.4666 units per greenback against a close of 19.3635 units per dollar yesterday, with official data from the Bank of Mexico (Banxico). This meant a depreciation of 10.31 cents or 0.53 percent for the currency.

The peso had started the second day of the week with an appreciation of 0.25% or 4.9 cents, trading around 19.35 pesos per dollar, explained this morning Gabriela Siller, director of Economic Analysis at Grupo Financiero Base; however, the trend reversed in the middle of the session.

“At the moment, the range between 19.30 and 19.45 continues to be respected, something that should not change given the low volume operated,” according to an analysis note from Monex Grupo Financiero.

The Dollar Index (DXY), which measures the greenback with a basket of six strong reference currencies, fell 0.11% to 103,900 points at the close.

The dollar It was flat for most of the day after China said it would remove its Covid-19 quarantine rule for incoming travelers, a major step in reopening its borders that helped many emerging-market currencies.

China will stop requiring travelers arriving in the country to quarantine from January 8, the National Health Commission announced Monday, despite the increase in Covid-19 cases. At the same time, Beijing moderated the regulations for the management of coronavirus cases to category B.

(With information from Reuters.)

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