The Mexican peso in November registered its worst monthly fall against the dollar since March 2020. Although in the last two days of the month it was able to recover ground, it only managed to partially cut its strong accumulated loss.
The exchange rate ended the session at 21,4681 units, compared to 20,6090 units at the close of October, with data from the Bank of Mexico (Banxico). That meant a drop of 85.91 cents or 4.17 percent for the peso.
The discovery of the new Omicron variant of Covid-19, which could be resistant to the vaccines that currently exist, raises the market’s alarms at the possibility of seeing new measures to shut down activities.
The executive director of the pharmaceutical company Moderna said that vaccines are unlikely to be effective against this variant and the World Health Organization (WHO) warned that it could represent a risk of more infections.
“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.
As another pressure factor, the president of the Federal Reserve (Fed), Jerome Powell, said that the risks of higher inflation have increased and that it is a good time to withdraw the transitory nature of the pressure on prices.
With two consecutive days of gains, the peso recovered 82.61 cents, thereby reducing its loss in November. At its worst of the month it scored 22,1550 units, its highest record since September 2020.
Reference-www.eleconomista.com.mx