Peso appreciates due to dollar weakness; market, keep an eye on the advance of Ómicron

The Mexican peso is appreciated against the American dollar for the fourth consecutive day. The local currency wins hand in hand with other emerging markets, in the face of a weakening of the greenback, while the market closely follows the news about Covid-19.

The exchange rate stands at 21.2490 units, against a close of 21.3759 units yesterday, with the official data from Bank of Mexico (Banxico). This means that the peso recovers 12.69 cents, which is equivalent to a movement of 0.59 percent.

Yesterday the peso cut its third consecutive advance after it was known that the first case of the new Omicron variant of Covid-19 was detected in the United States. In this session it moves between 21.4900 units and a minimum level of 21.2684 pesos.

“Volatility has settled in the markets, so swings have become the norm in recent days and will probably continue to be so for the rest of the year, as news about Ómicron is known,” CI Banco explained .

The Dollar Index (DXY), which measures the greenback against a basket made up of six reference currencies, lost -0.18% to 95.86 units. Traders are also waiting for news on the reduction in asset purchases from the Federal Reserve.

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