Financial markets are closed for the weekend. However, we explain how the US dollar closed the week and what the exchange rate is against other currencies in Costa Rica, Guatemala, Honduras, Mexico and Nicaragua.
After the close of the session on Friday, the dollar recorded gains. However, the American currency also posted a weekly drop and its worst performance in a month.
The dollar’s late-week gains were supported by comments from Federal Reserve Bank of New York President John Williams, who rejected expectations of an interest rate cut next year.
The dollar index (DXY), which measures the value of the dollar in relation to a basket of six major currencies, closed with a gain of 0.63%, trading at 102.59 units, according to Investing.com, one of the most important financial portals. However, it also posted a weekly loss of 1.40%.
Why did the dollar fall during the week?
The US currency fell after the Federal Reserve meeting this week. The Fed announced that interest rates remain unchanged in a range of 525-550 basis points.
The dollar plunged broadly after updated interest rate projections showed an expectation of 75 basis point cuts in 2024. Additionally, the central bank president took a less restrictive stance, noting that there is discussion about cuts “to the view”.
As for the future, a cut in interest rates would negatively affect the dollar. According to CME’s FedWatch tool, there is a 10.3% chance that the Fed will announce an interest rate cut to a range of 500-525 basis points at the next meeting in late January 2024.
Price of the dollar today, December 16: Exchange rate in Honduras, Mexico, Guatemala, Nicaragua
This is how the dollar exchange rate closed in Mexico, Honduras, Guatemala, Nicaragua and Costa Rica, according to Investing.com:
Mexico: 17.2005 Mexican pesos (MXN) +0.08%
Costa Rica: 525.96 Costa Rican colón (CRC)+0.08%
Guatemala: 7.8264 quetzales (GTQ) +0.12%
Honduras: 24.74 lempiras (HNL)
Nicaragua: 36.7500 córdobas (NIO)
On the other hand, this is how the exchange rate is in terms of buying and selling in the main banks and financial institutions:
Purchase
Mexico: 16.69 Mexican pesos (MXN) (Citibanamex)
Costa Rica: 514.00 Costa Rican colón (CRC) (Banco de Costa Rica)
Guatemala: 7.68 quetzales (GTQ) (Banco Azteca)
Honduras: 24.64 lempiras (HNL) (Ficohsa)
Nicaragua: 36.05 córdobas (NIO) (Ficohsa)
Sale
Mexico: 17.65 Mexican pesos (MXN) (Citibanamex)
Costa Rica: 528.00 Costa Rican colón (CRC) (Banco de Costa Rica)
Guatemala: 7.88 quetzales (GTQ) (Banco Azteca)
Honduras: 24.76 lempiras (HNL) (Ficohsa)
Nicaragua: 36.95 córdobas (NIO) (Ficohsa)
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