The feeling of risk aversion has not dissipated within the financial markets, causing the mexican peso Start your trading day with losses against the dollar this April 22.
According to the data reported by Bloombergthe Mexican currency depreciates 0.20 percent, so the exchange rate is located at 17.12 units, one cent less than at the close of Friday, April 19.
Until now, the exchange rate has fluctuated between a maximum level of 17.24 and a minimum of 17.01 units.
Why is the Mexican peso depreciating today, April 22?
“The Mexican currency extends last week’s losses, adding its second week of losses and erasing 2024 earnings faced with an increase in aversion to risk due to the geopolitical conflict between Israel and Iran and the possibility that the Fed maintains a tough stance this year,” said Janneth Quiroz, director of economic analysis at Monex.
The dollar index (dxy)which measures the strength of the US currency against a basket made up of six developed countries, rose 0.07 percent to 106.22 points.
For the Bloomberg dollar index (bbdxy)the advance is 0.05 percent and stands at 1,265 points.
Meanwhile, at bank windows, the price of the green bill is 17.51 pesos each, according to data from Citibanamex.
Which currencies depreciate the most against the dollar this Monday?
Among the currencies with the most losses are the pound sterling with 0.57 percent; the polish zloty with 0.56 percent; the Colombian peso with 0.47 percent; the south african rand with 0.47 percent, and the czech crown with 0.46 percent.
In the money market, the yield on the 10-year bond for the United States is 4.64 percent, while the 10-year bond in Mexico remains at a level of 10.20 percent.
Are peso losses a risk for inflation?
Within the framework of the 87th Banking Convention, Victoria Rodríguez, governor of Banxicoruled out that the recent episodes of volatility experienced by the Mexican peso are not a factor that could affect the trajectory of inflation.
“The effect we saw in recent days was quickly reversed. We do not see it as a factor that is having a significant impact. At this point it is not a relevant risk“he said the day after Mexico’s annual banking convention In Acapulco.
Although Banxico does not have a target range for the Mexican peso (as it does for inflation), Rodríguez Ceja said that the institution has been attentive to the geopolitical factors (the crossfire of attacks between Israel and Iran) that affected the currency. . For example, Thursday, April 18 The exchange rate rose to 17.62 units after what Israel launched missiles at Iranas reported by a US Government official to ABC News.
