Title: Dollar in Mexico Rises as Peso Depreciates
Mexico City — The price of the dollar in Mexico saw an increase in the exchange market this morning, Monday, July 17. The Mexican peso depreciated by 0.0484% against the dollar, settling at MXN$16.80 (Mexico City, 5:30 AM).
The dollar followed an upward trend in Mexico, reaching MXN$16.87 per unit around 7:30 AM. The director of Monex Economic, Exchange and Stock Market Analysis, Janneth Quiroz, noted that the USD/MXN exchange rate showed volatility with an upward bias in the overnight session. Investors are closely watching the Empire State manufacturing indicator for July.
This week, market participants will be guided by interest rate expectations, as both the Federal Reserve (Fed) and the European Central Bank (ECB) will announce their decisions next week.
In the intraday session, the Mexican currency reached a maximum depreciation of MXN$16.92 per unit on Friday, July 14, but later appreciated to a minimum of MXN$16.72 per dollar, according to Bloomberg data.
Analysts attribute the currency’s appreciation to the expectation that the Federal Reserve is nearing the end of interest rate increases due to a slowdown in consumer and producer inflation in the US. This has led to the US dollar teetering at its lowest level in over a year, with the dollar index falling 0.041% to 99.878 points.
According to data from the Official Gazette of the Federation (DOF), the exchange rate was established at MXN$16.789200 per dollar.
Looking at the year-to-date performance, the Mexican peso has appreciated by 14.07% against the greenback. The average price this year has been $18.08, with a maximum of $19.50 and a minimum of $16.75. Compared to other emerging market currencies, the Mexican peso ranks second among a basket of 23.
In Latin America, the Brazilian real (BRL) appreciated by 9.35%, the Colombian peso (COP) appreciated by 15.80%, the Peruvian sol (PEN) appreciated by 6.55%, the Chilean peso (CLP) appreciated by 4.22%, while the Argentine peso (ARS) depreciated by 49.63%.
The Mexican peso also made gains against the euro on July 14, appreciating by 0.46%. Year-to-date, the Mexican peso has appreciated by 9.91% against the European currency.
Today, July 17, the dollar fell in banks and exchange houses in Mexico. The peso-dollar exchange rate averaged at $16.8541 per greenback, with a purchase rate of $16.4115 and a sale rate of $17.2968 per unit.
In terms of specific bank rates, Banco Azteca set the exchange rate at $17.29, Citibanamex at $17.18, Banorte at $17.05, BBVA at $17.18, Scotiabank at $19.10, and CIBanco at $17.67.
Please note that the content in this article was produced with the support of automated data from Bloomberg.
This story was updated at 7:40 a.m. with information in the first few paragraphs.