The Mexican peso appreciated against the dollar this Monday. Despite having started the day in negative territory, the weakening of the greenback allowed the improvement even after disappointing figures for the Chinese economy.
The exchange rate ended this day at 20.0434 units compared to a record of 20.0877 units on Friday, with data from the Bank of Mexico (Banxico). That meant an advance of 4.43 cents or 0.22 percent for the Mexican currency.
The pair traded in an open range with a high of 20.1839 units and a low of 20.0249 units. The Dollar Index (DXY), which measures the greenback against a basket of six currencies, was down -0.39% at 104.15 points at the close.
Retail sales in the second largest economy fell 11.10% at an annual rate in April, in its biggest contraction since March 2020. Industrial production fell 2.9%, against the expectation of a 0.4% advance.
“From a technical point of view, the Mexican currency is trading near the psychological level of 20 per dollar and although it is unlikely to break through it, if it does, it could approach the support of 19.80 pesos,” explained the local Banco Base in a report.
The markets continue to pay attention to the economic figures due to concerns about weak global growth, interest rate hikes in the United States and damage to the Chinese economy due to closures against Covid-19.