Peso breaks floor of 20 units per dollar for the first time since March – El Financiero

The exchange rate remained at levels below 20 pesos per dollar for general weakening of the US currency against other currencies of advanced economies, mainly the eurowhat presented economic data above expectations.

According to data from the Bank of Mexico, the Mexican currency appreciated 0.40 percent being at 19.9635 units per dollar.

The weight hit a minimum of 19.9297 and maximum of 20.0551 units per dollar during the day.

“The dollar downward correction is due to a strengthening of various currencies of advanced economies, mainly the euro. This occurs after the revision of the economic growth figures for the Eurozone for the first quarter was published, which showed a quarterly growth of 0.3 percent, above the 0.2 percent initially estimated,” said Gabriela Siller, director of analysis economic base bank.

They added that to the above is added the speculation that the European Central Bank could begin to withdraw its monetary stimulus in the third quarter, with the end of the bond purchase program and an initial increase in the interest rate in July.

at the bank window, the dollar is sold at 20.50 unitsaccording to Citibanamex data.

For the Bloomberg dollar index, which measures the strength of the greenback against a basket of 10 currencies, it fell 0.60 percent to 1,245.31 points.

For the dollar index (DXY), a decrease of 0.77 percent was recorded to settle at 103,373 points.

“The peso has operated strongly since Banxico’s last meeting not only raised the rate by 50 basis points, but it was also mentioned in the statement that “it will consider acting more forcefully”. However, we believe that the momentum brought by the Mexican currency could slow down soon. We believe that the speeches of the FOMC governors throughout the week will be catalysts in the movement of the exchange rate”, said Diego Laviada, an analyst at Masari.

The main currencies that showed gains against the dollar are the Brazilian real, with 2.41 percent; Hungarian forint, with 2.14 percent; the South African rand, with 1.46 percent; the Swedish crown, with 1.37 percent; the pound sterling, with 1.30 percent; the Polish zloty, with 1.17 percent; the Israeli shekel, with 1.12 percent; the Czech crown, with 1.09 percent and the euro, with 1.04 percent.

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