Weight falls for the fifth day; touches worst level in more than eight months

The Mexican peso depreciated against him dollar American for the fifth consecutive session. The local currency fell against a stronger dollar and after an announcement by the president Andrés Manuel López Obrador about him Bank of Mexico.

The exchange rate ended operations at 21.4472 units per dollar against a record of 21.2275 units yesterday, with official data from the central bank. This meant that the Mexican currency lost 21.97 cents or 1.04 percent.

At its worst of the day, the crossing peaked at 21.6140 units, a high not seen since March 8. With five drops in a row, from 20.6688 units, the loss is 77.84 cents or 3.77 percent.

Near the end of the penultimate month of the year, compared to its last record of 2020, of 19.9500 units per dollar, the Mexican currency accumulates a loss in 2021 of one peso with 49 cents, equivalent to 7.50 percent.

Dollar advances

The Dollar Index (DXY), which measures the US currency with a basket of six reference currencies, gained 0.39% at 96.86 units at the close. With a maximum of 96.94 points, it hit its highest level since July 2020 on Wednesday.

Bets on a rise in interest rates on the Federal Reserve they have been strengthened. Rates of return on Treasury bonds are advancing and approaching their maximum for the year, something that elevates the performance of the greenback.

The improvement continues in the labor market and consumer spending in the United States, suggesting that the central bank would have a greater chance of raising its rate to respond to an environment of rising inflation.

This advance in the dollar is also caused by greater fears related to the closures of productive activities in some European countries due to coronavirus, which led the euro to hit a 16-month low.

Banxico and inflation

At the local level, some analysts mentioned as a factor of uncertainty that President Andrés Manuel López Obrador announced that he will propose the Undersecretary of Expenditures, Victoria Rodríguez, to lead Banxico.

Victoria Rodríguez, “has vast experience in public finance, but not in the management of monetary policy,” said the financial group Monex. The president’s announcement “creates uncertainty,” says his note.

The nomination was announced a few hours after it was learned that inflation in the first half of November marked its highest level in 20 years, with an annual rate of 7.05%, double the central bank’s goal.

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