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Trump's Declarations Influence Local Currency
MEXICO CITY.- The peso recorded sharp ups and downs in the week, although it ended with a moderately negative tone. His behavior was strongly linked to the statements of Donald Trump and the evolution of the dollar on the international market
The Bank of Mexico (Banxico) announced that the interbank dollar had closed yesterday at 19.0585 units. The day, the peso beat 2.95 cents, which equates to 0.16%.
In the banking window, the greenback was sold at 19.30 units, a figure similar to that reported Thursday at the closing of Citibanamex. it presented a maximum of 19,1061 units, while the minimum was reported in 18,9106 units, on the wholesale market.
The peso recorded a negative weekly balance, accumulating a depreciation of 0.73%. This ended four consecutive weeks with gains.
In the week, the Mexican peso ranks seventh as the currency with the worst performance, in those belonging to emerging countries, according to Bloomberg information.
The first, second and third places were for the Russian ruble, the Chilean peso and the Argentine peso, with falls of 1.46, 1.35 and 1.17%.
Yesterday, during the day, the Mexican currency recorded a 0.62% advance, supported by Donald Trump's statements against a strong dollar. However, it fell into negative territory later in response to the rise in US bond yields.
On the positive side for the peso, the 0.77% retracement was found in the index which measures the performance of the greenback with respect to
While the 0.05 point rise in the US 10-year bond rate helped to hurt the Mexican currency.
On his Twitter account, Trump has accused China and the European Union of manipulating their currencies, in addition to keeping interest rates low, while the US is raising their own interests and that the dollar is strengthening, removing the competitiveness of the North American export sector. Mexican currency, especially in the part where the US president does not agree with a strong green bill.
In the week also the peso received support for Trump's statements about his The possibility of signing a trade deal with Mexico
Meanwhile, fear in the markets has increased because the US president told CNBC that he was ready to impose tariffs on an additional $ 500 billion of imports from China. , a situation that intensifies fears around a trade war.
In another area, positive behavior is observed in the oil market, which helps to soften the decline of the Mexican currency.
The price of western Texas-type oil increases by 0.92% to 70.11 dollars per barrel, while the rate of Brent increases by 0.74% to 73.12 dollars.
Internally, it emerges the fact that in the auction to renew the expiration of currency hedges, a term of 33 days and due on August 22, the demand was $ 630 million, which exceeded in 2,52 times the 250 million finally placed.
The type of organic cam has a resistance at 19.30 pesos, while the nearest support is in the range of 18.50 to 18.60 units, on the wholesale market.
Statements of Effect
Some Trump's Messages Affect, in Different Ways, the Weight of the Week
Contrasts
The National Currency Increases When the President of the United States Turns said ready to sign a trade deal with Mexico. But yesterday, he fell when he said he was ready to impose tariffs of $ 500 billion on imports from China.
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