This depreciation is associated with internal and external factors, but the most significant risk perception is local. The approval of electricity reform in the Chamber of Deputies and the IGAE data published today raises doubts about its economic recovery.
MEXICO CITY (FOREX) – The Mexican peso fell sharply against the dollar in Thursday’s trading. The exchange rate is at the level of 20.6670 units per dollar against the official closing of 20.4270 pesos yesterday from the Bank of Mexico (Banxico).
The movement in the quotation means for the local currency a loss of 24 cents or a variation of 1.18 percent. The currency cross moves between a high of 20.7560 pesos and a low of 20.3835 pesos.
Internal and external factors
The peso’s significant depreciation is associated with internal and external factors, but the most considerable risk perception is local. Emerging currencies are also influenced by the South African rand and are falling despite a weak dollar.
Locally, traders have been closely following Congress’s discussion of a controversial electricity reform bill that the Chamber approved of Deputies. It is expected to affect Mexico’s recovery.
Also, data released this morning from the Global Indicator of Economic Activity for December shows that the economic recovery stalled due to the pandemic’s effects.
There has also been a strong upward movement in Treasury bond yields due to fears that the Federal Reserve’s monetary policy will put upward pressure on inflation. This factor plays against the dollar.
The Dollar Index (DXY), which measures the U.S. currency against a basket of six benchmark currencies, fell -0.49% to 89.74 units. Despite the dollar’s fall, the peso came close early to its worst level of the year.
more recommended stories
A woman is crushed to death when a tree falls on top of her car on the Mérida-Valladolid highway
A strange accident happened on Thursday,.
With these local flowers, you help prevent the loss of bees in Yucatan
Every May 20, World Bee Day.
US government officials talk about UFOs publicly for the first time in 50 years
Two senior U.S. defense intelligence officials.
The US Embassy to invest 30 million USD in the “South of Mexico Generating Employment and Sustainability” program
In alliance with seven governments from.
Face-to-face courses return to La Ibérica de Mérida; they will celebrate a big event on Sunday
On Sunday, May 22, the Centro.
Construction worker arrested for sexual abuse against a maid inside a hotel in Tulum, Quintana Roo
The municipal police of Tulum, in.
Yucatan is about to receive the first cloud of dust from the Sahara desert in 2022
A cloud of dust from the.
Yucatecans seek to sell one ton of Cochinita Pibil and 6 thousand panuchos in Mexico City
With the “Yucatán Expone” program, Yucatecan.
Mérida Municipal Police officer returns wallet to owner with more than 5 thousand pesos
The Mérida Municipal Police agent Roberto.
Man sentenced to 32 years in prison for homicide in Mérida, Yucatán
After being found criminally responsible for.