The Mexican peso depreciated against American dollar for the second consecutive day. The local currency lost ground in a market concerned about various factors that could put pressure on the global economy in 2022.
The exchange rate ended the day at 20.4008 units, with a slight movement of 3.69 cents, which is equivalent to 0.18% compared to the record of 20.3639 units per dollar yesterday, with data from the Bank of Mexico (Banxico).
The currency pair traded in a range between a high of 20.5373 units and a low of 20.3245 units. The Dollar Index (DXY), which compares the greenback against six other G7 currencies, gained 0.64% to 102.95 points.
Foreign exchange market participants take refuge in the dollar, while the market behaves nervously due to the possibility of a very weak performance of the global economy in 2022, and even a recession.
The lockdowns in China for Covid-19 could affect supply chains and war between russia and ukraine maintains pressure on prices, while the May meeting of the Federal Reserve (Fed).
“Fears continue that the lockdowns in China will end up affecting the world economy, which together with the war and monetary normalization fuel these fears of a global recession,” CI Banco explained.
With a ceiling of 103.28 units, during the day the index that measures the performance of the dollar reached a level not seen since January 2017, while the parity rose to the highest level since March 18.
In two consecutive days with losses, compared to an official closing of 20.2032 units on Monday, the peso accumulates a loss of 19.76 cents in two days, which is equivalent to a drop of 0.98 percent.