Peso extends recovery, but outlines worst month since March 2020

The weight extend his recovery this Tuesday. The local currency advances for the second day in a row after the strong stumble it suffered due to the fear in the market of the new variant of Covid-19, but profile a strong monthly loss.

The exchange rate is located at 21,4250 units per dollar compared with 21.6758 units of yesterday’s closing, with the data of Bank of Mexico (Banxico). That means a recovery for the peso of 25.08 cents or 1.16 percent.

The pair moves in a range between a high of 21.8370 units and a low of 21.4009 units. In two consecutive days of advances, from 21.8335 units, it accumulates an appreciation of 40.85 cents or 1.87 percent.

But despite this advance, the peso is outlining its worst monthly fall since March 2020, and compared to the closing of October of 20.6420 units, the currency outlines a fall of 78.3 cents, with a variation of 3.79 percent.

The peso fell back during Friday’s session to its weakest level in 14 months. It also registered the biggest weekly drop since September 2020. Markets showed a aversion to risk due to the fear of Covid-19.

The chief executive of drug maker Moderna said the vaccines are unlikely to be as effective against the new omicron variant as they have been against other variants of this disease.

“It is likely that a couple of weeks will pass before the scientific community can make a final judgment on the severity of the variant. December will probably be hectic,” said Jeffrey Halley, an analyst at OANDA.

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