Peso appreciates due to weakening of the dollar after a round of economic data in the US


The Mexican peso appreciated against the American dollar this Thursday. The local currency recovered ground on a weakening of the greenback in a market that reacted to the most recent figures of the US economy.

The exchange rate ended this session at 19.5602 units against a record of 19.6868 units yesterday, with data from the Bank of Mexico (Banxico). This meant an appreciation of 12.66 cents, which is equivalent to 0.64 percent.

Emerging currencies had mixed performances, but the peso was positioned among the best this Thursday due to the fact that the Bank of Mexico’s inflation report maintained the “hawkish” bias of the minutes of its last meeting.

“We must highlight that on June 23 there will be a Banxico meeting to review its monetary policy. The forecast is that the reference rate will rise by 75 basis points to the level of 7.75,” Fintech Mundi explained.

The cross traded in an open range between a high of 19.7261 units and a low of 19.5269 units. The Dollar Index (DXY), which measures the greenback against a basket of six currencies, was down -0.71% at 101.77 at the close.

Reaction to figures in the US

The improvement in parity was observed early in the day, after the publication in the United States of the ADP private sector employment survey for May, which showed the creation of 128,000 jobs.

The number weakened the greenback by falling considerably below the figure expected in the markets of 300,000, explained in a report Gabriela Siller, the director of Economic and Financial Analysis of the local Banco Base.

The weekly number of applications for government unemployment benefits fell by 11,000 to 200,000. The number compares with 211,000 the previous week and was less than the expected 210,000, in a tense labor market.

“The data prepares us to receive the non-farm payrolls and the unemployment rate on Friday. If unemployment decreases it could generate optimism in the short term,” said Eduardo Ramos, market analyst at the ATFX platform.

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