The Mexican peso regains ground before dollar on Monday. The local currency is appreciating slightly and trying to end a streak of seven losses in a row, with traders still on the lookout for information on the new variant of Covid-19.
The exchange rate stands at 21.7652 units against a record of 21.8335 units at its close on Friday, with the data of Bank of Mexico (Banxico). That means a gain for the Mexican currency of 6.83 cents or 0.31 percent.
The cross moves in a limited range between a maximum of 21.9940 units and a minimum of 21.6872 units per dollar. The market is apparently calm, after a week of data and news that raised the aprity.
The peso reached its weakest level in 14 months on Friday, with a ceiling of 22,1510 units, dragged by a global wave of aversion to risk assets due to the initial shock by the discovery of a variant of Covid-19.
Omicron is likely to spread internationally and pose a very high risk of sharp increases in infections that could have “serious consequences” in some places, the World Health Organization said.
Analysts believe that the possibility that the new variant of the global virus becomes more severe may be a reason for central banks to postpone interest rate hikes until the outlook on the virus is clearer.
Reference-www.eleconomista.com.mx