Peso begins May with its lowest level in 6 weeks ahead of the Fed’s announcement – ​​El Financiero

This week there will be several monetary policy announcements, among the most prominent will be the Federal Reserve next Wednesday, May 4, so the Mexican coin closed one caution day as the trend in most emerging currencies.

The Mexican currency depreciated 0.72 percent when staying in 20.4919 units per dollar, its lowest level since March 17according to data from the Bank of Mexico.

The weight touched a minimum of 20.3418 and a maximum of 20.5110 units per dollar during the day.

“The market will pay special attention to the Federal Reserve’s monetary policy announcement scheduled for May 4 at 1:00 p.m., where a rate increase of 50 basis points is anticipated. For the market, the information in the press release and Jerome Powell’s press conference will be relevant to assess the probability of subsequent adjustments to the interest rate at the same pace,” said Gabriela Siller, director of economic analysis at Banco Base.

At the bank window, the dollar is sold in 21.01 unitsaccording to Citibanamex data.

The Bloomberg dollar index, which measures the strength of the greenback against a basket of 10 currencies, rose 0.51 percent to settle at 1,249.95 pointsits highest level in almost two years.

For the dollar index (DXY), there was an increase of 0.67 percent to settle at 103,706 points.

“The Mexican peso starts the month and the week around 20.40 spotswith attention focused on the Fed’s monetary policy meeting this coming Wednesday, May 4, as well as the disappointing figures on economic activity in China and the prospect of sanctions against Russian oil,” said CI Banco analysts.

The main currencies that depreciated against the US currency are the Brazilian realwith 1.90 percent; south african rand, with 1.87 percent; the hungarian forint, with 1.23 percent; the Colombian peso, with 1.12 percent; the Chilean peso, with 0.97 percent; the polish zloty, with 0.79 percent; the swedish krona, with 0.77 percent; the South Korean won, with 0.76 percent and the Norwegian krone, with 0.73 percent.

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