The peso loses the land against the dollar in the face of the falling oil

MEXICO CITY (APR). – The Peso left dollars against the dollar, driven by a fall in oil prices. At the bank branches, the green ticket was offered at 20.77 units; while at the interbank level, Bank of Mexico (Banxico) was quoted at 20.42 pesos, which is 1.62% more expensive than last Monday.

Today, the West Texas Intermediate (WTI) dropped 6.71% to $ 53.36 a barrel. In October, it lost almost 30% from its peak, thanks to the perception of the market that the reduction in oil production of the Organization of Petroleum Exporting Countries (OPEC) will not suffice to prevent excessive supply in the coming months.

In this context, the Base Bank analysis explained that most of the currencies in the main dollar basket were closed down, especially in the countries that produce raw materials and oil.

The Norwegian crown closed with a depreciation of 1.27%, the Canadian dollar lost 1.04% and the Australian dollar lost 1.03%.

According to the analysis, the weakening of the peso during the first hours of the day was due to a combination of factors, "above all, uncertainties about how decisions will be made in future federal government, raising questions about the health of the future of public finances."

"It should be noted that the Mexican peso managed to erase most of its losses after it revealed that Vice-Governor Banxico Javier Guzmán indicated that it might be necessary to increase the reference rate in the short term," said the bank's base.

The deputy governor added that the balance of risks to inflation remains worse and worsened due to the weakening of the peso, the possibility of rising energy prices, potential wage pressures, and the risk of "dismantling" inflationary expectations.

This increases the likelihood that the Governing Council will raise its interest rate on 20 December and, to date, contribute to exchange rate stability.

While this is happening, capital aversion risk aversion came back on Tuesday when the IPC of the Mexican stock exchange lost 1.23%, respectively. 521.9 points, while the S & P 500 in the United States recorded 1.82%. ,

"At other meetings, uncertainty about the future trade relationship between the United States and China could continue to negatively affect global capital markets," said Base Bank.

Source link