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© Reuters.
Before noon, the Mexican currency registered an appreciation of 0.4%, trading at 18.97 pesos per dollar.
By: Julio Sanchez Onofre
Investing.com – At midday this Wednesday, January 11, the dollar was trading below 19 units per dollar, which represents its best level against the US currency since February 2020.
Before noon, central Mexico time, the Mexican currency registered an appreciation of 0.4% at an exchange rate of 18.97 pesos per dollar.
“U.S. inflation is released tomorrow and the market is betting it will continue to slow, which means the Fed won’t have to be as aggressive on hikes this year. The appreciation of the main dollar crosses is related to optimism, since the light is beginning to be seen at the end of the road with high inflation in the US and the rise in interest rates,” explained Gabriela Siller, director of Economic and Financial Analysis at BASE Bank.
On Wednesday morning, the Mexican peso showed an appreciation of 0.25% or 4.7 cents and was trading at 19.0206 pesos per dollar, with the exchange rate reaching a maximum of 19.1128 and a minimum of 19.0023 pesos per dollar, a level not seen since on February 25, 2020.
Also read: USDMXN: will the Mexican peso remain optimistic after US inflation data?
The local currency closed yesterday’s session with an appreciation of 0.42% or 8.1 cents, registering a maximum of 19.17 and a minimum of 19.04 pesos per dollar. If this trend continues, the Mexican peso could accumulate its eighth consecutive day with a favorable performance against the dollar and, if the markets maintain optimism, it could head towards the next support of 18.94 pesos.
“The exchange rate is set to close for the second consecutive session below 19.10 pesos per dollar, something that had not happened since the sessions of February 24 and 25, 2020. The above is a sign of consolidation of the exchange rate at levels close to 19 pesos per dollar,” the analyst noted in a report previously published by Investing.com.
Analysis: The Mexican peso shows an appreciation of 0.25%
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