Peso closes stable despite dollar recovery and weak IGAE data

The Mexican peso remained stable against dollar this Monday. The local currency had a negative behavior at the beginning of the session, as it received pressure from a recovery of the dollar and weak figures for the local economy.

The exchange rate closed the day at 20.1740 units against its record of 20.1790 pesos on Friday, with official data from the Bank of Mexico (Banxico). The change implies a marginal advance of 0.03%, less than a penny.

The pair moved in a range between a high of 20.2302 units and a low of 20.1551 units. At the close, the Dollar Index (DXY), which compares the greenback with a basket of six currencies, rose 0.19% to 93.82 points.

The dollar regained ground on Monday as traders expect tighter monetary policy in the United States, despite bets that rate hikes will occur earlier in other countries.

The president of the Federal Reserve (Fed) Jerome Powell announced on Friday that the central bank should begin reducing its asset purchases soon, but without raising rates because employment is still weak.

The peso lost strength after the release of local economic figures. The Global Indicator of Economic Activity (IGAE) contracted 1.6% in August against the previous month, a negative figure prior to relevant figures.

On the technical side, the pair traded below the 200-day exponential moving average, located at 20.2200 units, which is its short-term resistance. Support would be at 20.1200 units, ActivTrades explained.

[email protected]

Leave a Comment