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The peso closed with a depreciation of 0.41% or 8.2 cents, trading around 19.99 pesos for one dollar, after the exchange rate reached a maximum of 20.20 pesos for a dollar during the session. The depreciation of the peso was accentuated in the morning as a result of a general strengthening of the US dollar against its main cross, in the expectation of favorable economic indicators for the United States who could, during the week, raise speculation in favor of the dollar. The first of these indicators was the manufacturing ISM corresponding to June, which stood at 60.2 points, indicating that the manufacturing sector has been growing at its best pace ever since. February. It is worth remembering that the minutes of the last monetary policy meeting of the Federal Reserve, scheduled for Thursday, July 5, will also be released this week. If a more restrictive Fed position is confirmed, the dollar could continue to gain ground by the end of the week.
In the morning, there were also decreases in the prices of the commodities and financial markets. Asia and Europe, because of the nervousness associated with the protectionist policy of the White House. Market participants expect the United States to apply tariffs to China by the end of the week and, in turn, expect imports from the United States to come into effect.
the most affected currencies are those of emerging economies and commodity-producing countries. The Australian dollar closed with a depreciation of 1.01%, followed by the South African rand which fell by 1%, the New Zealand dollar by 0.93% and the Brazilian real which lost 0.87%.
During the morning, the Mexican peso depreciated more currencies, but reduced their losses by reducing the uncertainty associated with the upcoming federal administration in Mexico. During the session, Donald Trump told the media that he had spoken on the phone with López Obrador, with whom he had had a "great conversation" for over half an hour, adding that there would be good relations between the two governments. On the other hand, the economic policy officials of the next administration held a conference where they indicated that they will seek an orderly transition from 6 September, making sure that they will be able to make an orderly transition. they will focus on maintaining a responsible macroeconomic and fiscal policy. They also emphasized the importance of focusing spending on a few social programs that have a greater impact.
During the session, the peso-dollar parity reached a minimum of 19.6406 and a maximum of 20.2006 pesos for one dollar. The Euro-peso has reached a minimum of 22,8990 and a maximum of 23,4410 pesos per euro in interbank rates on sale. For its part, the euro touched a minimum of 1.1591 and a maximum of 1.1693 dollars per euro
At closing, the interbank sale rates were 19.9911 pesos for one dollar, 1.3143 dollars for one pound and 1.1641 dollars for one euro.
Gabriela Siller; PhD
Director of Economic and Financial Analysis
Banco BASE
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