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MEXICO CITY (Expansion) –
The Mexican peso rebounded sharply on Tuesday and dominates emerging-market gains due to the weak dollar, and after the People's Bank of China said it would look for to maintain "stability" In the counters of banks, the greenback is sold at 19.95 pesos, 50 cents less than the previous one, and the purchase is 19.15 pesos, according to the quote from Citibamex. In BBVA Bancomer, the US currency is sold at 20.04 pesos, 37 cents less than Monday, and the purchase at 18.96 pesos.
By and large, the dollar sells for 19.6376 pesos, which means a profit of 2% for the national currency compared to the previous official close, according to data from Bloomberg and Banco de México (Banxico).
"The peso shows a significant recovery (…) after this Monday has reached maximum levels of 20.20 per dollar, this in a moderate recovery environment of emerging currencies, while the peso displays the highest appreciation ", said Santander in a report
The peso loses ground to the arrival of Morena to Congress
In a statement posted on the website of the People's Bank of China, Governor Yi Gang has stated that the central bank was closely following the fluctuations of the foreign exchange market and would seek to keep the yuan at a stable and reasonable level. The official added that cross-border capital flows were under control.
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"This was enough to change the sentiment of the markets because the decline in the prices of financial assets in China has caused a lot of concern," says Grupo Financiero Banorte in an analysis on Tuesday
The yuan fell on Tuesday beyond the psychologically significant level of 6.7 units per dollar, its lowest level for nearly a year as worries about trade tensions with the United States increased. Chinese currency and equity markets were on hold before July 6, when US $ 34 billion worth of Chinese goods will come into effect. Beijing has already said that it would retaliate with tariffs on US goods
The Bloomberg dollar index which measures the performance of the greenback against major world currencies, falling from 0.44% to 1,181.27 units.
The rise in the peso is also supported by other factors such as: the recovery in oil prices, restrictive comments from the central banks of Sweden and England, which indicate possible increases in their rates of interest, and a repositioning of the market for July 4, a holiday in the United States, said Banco BASE's director of economic and financial analysis, Gabriela Siller, in a report.
The local currency also appreciated after the previous day he fell amidst a wave of risk aversion and after the comfortable electoral victory of Andrés Manuel López Obrador who would lead his party and his allies to get the majority of seats in the Co N.
The peso loses ground before the arrival of Morena in Congress
"Although the appreciation of the peso is significant, the price is still greater than 19 , 60 pesos for a dollar, a support that has been respected since last week "says Siller.
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