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The Mexican Peso Gains Strength Against the US Dollar, Rebounding After Recent Losses

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The Mexican Peso Gains Strength Against the US Dollar, Rebounding After Recent Losses

The Mexican currency gains strength again and gains ground on the US currency

By: Luis Flores

Gabriela Siller, director of analysis of Base Bank, announced that the Mexican peso trades profit vs. the American dollar this Thursday morning.

The currency regains ground after scoring a streak of three consecutive losing sessions, thanks to the greenback pulling back after posting a considerable rally.

The director clarified that the appreciation of the peso should not be seen as a return of risk appetite in financial markets, as nervousness persists about a possible recession in China and risk aversion for Mexico has increased.

According to Siller, this was due to the minutes of the Federal Reserve’s monetary policy that were interpreted as restrictive, generating the strengthening of the US currency by 0.23 percent, according to the weighted index.

The increase in risk aversion towards Mexico also had an influence after the rating agency Fitch Ratings indicated that the federal government’s support for Pemex could have a negative effect on the rating.

Appreciation

According to information from the Bank of Mexico (Banxico), the spot exchange rate was located at a level of 17.0945 units per dollar compared to an official close of 17.1420 units yesterday, which meant a gain of 4.75 cents for the currency.

The pair operates in a limited range between a ceiling of 17.2084 units and a minimum level of 17.0596 units. The Dollar Index (DXY) of the Intercontinental Exchange, which measures the greenback with the other G7 currencies, fell a moderate 0.24 percent and settled at the level of 103.18 units.

Price of Dollar in Mexico

BBVA Bancomer Buy $16.46 Sell $17.36

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Azteca Bank Buy $16.35 Sell $17.39

CitiBanamex Buy $16.60 Sell $17.55

Scotiabank Buy $16.10 Sell $17.70

Affirm Buy $16.20 Sell $17.60

Banorte Buy $15.90 Sell $17.35

It is important that users verify which bank is more convenient to change their dollars, taking into account that the price changes day by day.

Currently, the best bank to buy the US currency is Banco Azteca, and to sell Banorte.

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