Peso depreciates due to lack of progress in negotiations with Russia and Ukraine

The Mexican peso depreciates against American dollar this Thursday, after figures for inflation in the United States and in the face of persistent concerns about the war between russia and ukraine.

The exchange rate stands at 21.0267 units compared to the record of 20.8764 units at the close of yesterday, with the data from Bank of Mexico (Banxico). That means a drop of 15.03 cents, equivalent to 0.72 percent.

The cross trades in a range between a high of 21.0660 units and a low of 20.9050 units. The Dollar Index (DXY), which measures the greenback with a basket of six currencies, advanced 0.37% to the level of 98.33 points.

Traders are once again concerned about the possible effects of the war between Russia and Ukraine, after negotiators from these countries failed to make progress on their differences in their talks.

“The pressure is returning to the Mexican foreign exchange market,” analysts at local CI Banco said. “Until things calm down on the geopolitical issue, it will be very difficult to predict the short- and medium-term trend.”

Russian and Ukrainian foreign ministers met today in Turkey, in the highest-level contact between the two countries since the war began in late February, but there was no progress.

In the United States it was announced that consumer prices rose in February in line with expectations. Operators expect the Federal Reserve (Fed) start raising rates next week.

Yesterday the peso scored a strong advance of more than 2% because the dollar fell hand in hand with oil, in reaction to the veto of oil and other Russian energy in the United States that encouraged hopes of a solution.

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