The Mexican peso start the session Mother’s day expanding its gains against the dollar, under the expectation that the Federal Reserve could cut its interest rates this year, while the Bank of Mexico has shown a more restrictive monetary stance.
According to the data of Bloombergthe Mexican currency appreciates 01.6 percent, so the exchange rate is located at 16.75 units, 4 cents less compared to the closing on Thursday, May 9.
Gabriela Sillerdirector of economic analysis-financial from Banco Base, reported that the peso reached 16.73 units against the dollar, a level not seen since last April.
The peso begins the session with an appreciation of 0.15% or 2.6 cents, trading around 16.76 pesos per dollar, with the exchange rate touching a maximum of 16.8131 and a minimum of 16.7386 pesos per dollar, not seen since April 16.
— Gabriela Siller Pagaza (@GabySillerP) May 10, 2024
How much can the Mexican peso appreciate today, May 10?
CIBanco analysts anticipate that for the rest of the day this May 10the Mexican peso could fluctuate between 16.70 and 16.85 units.
On Thursday, emerging market currencies pared their losses after the latest US jobless claims data showed a ‘cooling’ of the labor marketwhich paves the way for the Federal Reserve to cut its rate.
The MSCI Emerging Markets Currency Index was falling 0.2 percent trimming losses of up to 0.16 percent recorded earlier. The Chilean peso and Polish zloty led gains among their developing counterparts.
The dollar index (dxy)which is responsible for measuring the strength of the US currency against a basket made up of six main currencies, rose 0.11 percent, placing at 105.34 units.
In the same way, the Bloomberg dollar index (bbdxy) registers a decrease of 0.08 percent and stands at 1,253.89 points. At bank windows, the dollar is sold for 17.17 pesos each, according to data reported by Citibanamex.
What are the currencies that appreciate the most against the dollar this Friday?
The South African rand gains 0.32 percent, leading the group of winning currencies. They follow him the chilean peso with 0.31 percent; the norwegian crown with 0.18 percent; the canadian dollar with 0.17 percent, and the south korean won with 0.14 percent.
In the money market, the yield of the 10-year Mbono, in Mexico, is placed at a rate of 9.99 percent, while, in the United States, the yield of the 10-year bond reaches a level of 4.49 percent.
With information from Bloomberg
