The Mexican peso ended November with a depreciation of 4.17% at a level of 21.4681 pesos per dollar, its biggest loss since March 2020, when the Covid-19 pandemic began. At that time, the currency closed the month at 23.7980 units per greenback.
The strengthening of the US currency was mainly due to a greater aversion to risk among investors due to an increase in contagions of Covid-19, the new variant Ómicron, inflationary pressures and the start of the Federal Reserve bond buyback program from the United States, which has weakened the currencies of emerging economies.
Janneth Quiroz, deputy director of Economic Analysis at Monex, commented that “the main issue that was present in the tenth month of the year was related to inflation. Bets began to be adjusted on when central banks will begin to modify their monetary policy ”.
For his part, Amin Vera, deputy director of Economic Analysis at Black Wallstreet Capital, stated that the volatility of the exchange rate in November, “has to do with the electricity counter-reform and with the proposal that Victoria Rodríguez be the next governor of Banco de Mexico”.
These are factors of confidence in Mexico that are reflected in the exchange rate and in the stock markets.
Other currencies
The Turkish lira ended the month with a depreciation of 40.62% to trade at 13,5022 units per dollar on Tuesday, followed by the Colombian peso with a loss of 6.32%, the Swedish krona with a depreciation of 5.04%, the Russian ruble with 4.42% and in fifth place the Mexican peso with 4.17 percent.
“The dollar remained with an upward trend and a very solid stance, supported by reports on economic variables in the United States, such as employment, Gross Domestic Product, manufacturing and others, which was aligned to expect that monetary stimuli will no longer they are so necessary, ”explained Janneth Quiroz.
In November, some currencies showed resilience against the dollar, such as the British pound that traded at 1.3308 dollars per unit and an appreciation of 2.79 percent.
It was followed by the euro with a gain of 1.91% to 1.1338 dollars per euro, the Chinese yuan and the Japanese yen appreciated 0.64 and 0.60%, respectively against the greenback.
On the other hand, of the emerging currencies, only the Brazilian real appreciated 0.23% in the month against the dollar, closing at 5.6244 units per greenback.
According to Black Wallstreet Capital, during November there was a general strengthening of the dollar, which is clearly observed in the dollar index.
Between November 10 and 24, the index strengthened 3.14 percent. Due to the volatility of the last few days, it closed November with a rise of 2.06 percent.
Reference-www.eleconomista.com.mx