Mexican peso appreciates 0.74% against the dollar and marks the second weekly rise

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Mexico City, Oct 22 (EFE) .- The Mexican peso closed this Friday with a weekly appreciation of 0.74%, trading at 20.18 units per dollar in the interbank market, registering a second week on the rise after more than a month down.

This implies a weekly gain of the peso of 15 cents compared to the exchange rate of 20.33 units per US bill of the previous Friday, according to the data reported by the Bank of Mexico (Banxico).

“The appreciation of the peso occurred due to a decrease in the perception of risk in global financial markets, which allowed the peso to appreciate for the second consecutive week,” Gabriela Siller, director of economic analysis at Banco Base, told Efe.

During the week the exchange rate reached a maximum of 20.5 and a minimum of 20.13 pesos per dollar.

Among the factors that allowed the appreciation of the Mexican peso, the analyst highlighted a “technical correction” in the exchange market, recovering lost ground against the dollar, which in turn depreciated against other currencies.

There was also a “contagion effect of optimism in the capital market.”

In addition, he stressed that the expectation that the Bank of Mexico will continue to raise the interest rate in the face of inflation above 6% also influences the evolution of the Mexican currency.

“In the Chicago futures market, net speculative positions awaiting a depreciation of the peso decreased, after four consecutive weeks of increases,” he added.

In this way, in the foreign exchange market, the Mexican peso was among the five most appreciated currencies during the week, he concluded.

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