The Mexican peso depreciates against American dollar this Wednesday morning. The local currency lost ground for the second consecutive day due to persistent fears about the growth of the global economy.
The exchange rate is located at 20.4363 units against the record of 20.3639 units from yesterday’s close, with the data from Bank of Mexico (Banxico). This is a retracement for the peso of 7.24 cents or a change of 0.36 percent.
The pair trades in an open range with a high of 20.5182 units and a low of 20.3245 units. The Dollar Index (DXY), which measures the greenback against six benchmark currencies, is up 0.63% at the 102.95-unit level.
With a ceiling of 103.10 units, the index that measures the dollar against its main pairs reached this morning a level not seen since January 4, 2017, while the cross marked its worst level since last March 18.
The greenback strengthens as investors hedge against fears about the conflict between Russia and Ukrainethe impact of lockdowns in china and one Booking Federal (Fed) willing to toughen its stance.
“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.