The Mexican peso depreciates this Tuesday morning against the American dollar. The local currency lost ground due to a strengthening of the greenback, in a context of greater concern about the growth of the economy.
The exchange rate stands at 20.3242 units against the record of 20.2032 units from yesterday’s close, with data from the Bank of Mexico (Banxico). That means a loss of 12.10 cents, which is equivalent to 0.60 percent.
The cross trades in an open range between a high of 20.3350 units and a low of 20.1917 units. The Dollar Index (DXY), which measures the greenback against a basket of six currencies, advanced 0.25% to 102.00 units.
Fears of the impact on the global economy that lockdowns in China may have to reduce spikes in Covid-19 puts the markets on alert. A wave of risk aversion increases the demand for haven assets.
The dollar advances as a safe asset and the index, which measures it against the other G7 currencies, exceeds the barrier of 102 units. Before, it reached a ceiling of 102.03 points, a level not seen since March 2019 (more than three years ago).
“The strict confinement measures in China, and the increase in cases of Covid-19 in large cities such as Beijing, are weighing on expectations of economic growth,” explained the local firm CI Banco in a report.