The Mexican peso depreciated this Friday against the American dollar. The local currency lost ground after it became known that Mexico is the second country in Latin America with a case of the variant Omicron from Covid-19.
The exchange rate ended the session with a record of 21.3734 units against 21.3443 units yesterday, with data from the Bank of Mexico (Banxico). That meant a loss of 2.91 cents or 0.14 percent for the currency.
The slight fall of the Mexican currency was recorded in a volatile session with a wide range, in which the price rose to a maximum of 21.4919 units, while the minimum marked was 21.1626 units per dollar.
Despite this, the peso accumulated an appreciation of 46.01 cents or 2.15% during the week, after concerns about Ómicron and inflation led it to close last Friday with a level of 21.8335 units.
Factors for the fall
Mexico today became the second country in Latin America (only after Brazil) to confirm a case of the new Omicron variant of Covid-19, by reporting the presence of the strain in a person from South Africa.
“A factor that influenced the loss of the Mexican currency is the concern generated by the uncertainty about the Omicron variant and the fact that it is already present in our country,” said James Salazar, economist at CI Banco.
Uncertainty remains in the markets about the next steps for US monetary policy, after the president of the Federal ReserveJerome Powell said that inflation is not transitory.
To add to this factor, today it was published that 210,000 jobs were created in the United States in November, less than the 550,000 expected by the consensus of analysts and that is compared with a figure of 546,000 in October.
Despite the fact that job creation in the United States fell short of expectations, the Fed’s monetary policy makers appear willing to accelerate cutting their bond purchases at their next meeting.
Reference-www.eleconomista.com.mx