Peso appreciates due to return of appetite for risky assets

The Mexican peso advance in front of American dollar on Wednesday thanks to a better mood in the markets. Western nations imposed weaker-than-expected sanctions on Russia, which helped risk appetite.

The exchange rate stands at 20.1953 units, compared to a record of 20.2972 units at yesterday’s close, according to the Bank of Mexico (Banxico). This means that the local currency recovers 10.19 cents or 0.50 percent.

The pair trades in an open range between a high of 20.3003 units and a low of 20.1574 units. The Dollar Index (DXY), which measures the greenback against a basket of six benchmark currencies, lost -0.10% to 95.93 units.

“During the session no relevant economic information is expected; market participants remain attentive to the evolution of tensions between Russia and the West,” said Gabriela Siller, Director of Analysis at local Banco Base.

Moscow has deployed troops to breakaway regions in eastern Ukraine. The United States, the European Union, the United Kingdom, Australia, Canada and Japan responded with plans to shrink their banks and restrict travel by lawmakers.

Earlier Germany froze a major gas pipeline project from Russia. But there are so far no direct sanctions for President Vladimir Putin and they are not expected to have serious or close consequences for Moscow.

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