The peso closed the session with a depreciation of 1.15% or 27.2 cents, trading around 23.92 pesos per dollar, as a consequence of a strengthening of the US dollar against most of its main crosses.

Initially, the dollar’s gains were driven by a higher perception of risk after a resurgence in the number of new coronavirus cases was observed in South Korea, making evident the risk related to the processes of economic reopening.

During the session, although the perception of risk in other financial markets was reduced, and a recovery was observed in the capital market, the dollar remained strong. This was because two Federal Reserve officials opposed the idea of ​​negative interest rates in the United States.

Chicago Regional Reserve President Charles Evans said he anticipates low interest rates to hover near zero for an extended period of time, adding that it is a good time for the government to go into debt to spend on support programs. to businesses and local governments.

For his part, the president of the Atlanta Regional Reserve, Raphael Bostic, said that negative interest rates are one of the weakest tools to conduct monetary policy.

He noted that the pace of recovery will depend mainly on the response in health. It should be remembered that the expectation of negative interest rates in the United States tends to weaken the dollar, so the low probability of rates being implemented below 0% strengthened the US currency.

The peso and the bonds

It is important to add that, during the session, the rate of return on 10-year M bonds showed an increase of 11.4 basis points, standing at 6.02%, being the first increase since April 24.

The above is consistent with the depreciation of the Mexican peso and confirms that it is a correction to last week’s movements, in which the 10-year M Bond yield rate dropped 71 basis points to 5.90 percent.

In the session, the exchange rate touched a minimum of 23.5514 pesos and a maximum of 23.9739 pesos. The euro-peso reached a minimum of 25.4228 and a maximum of 25.9575 pesos per euro in the interbank prices for sale. For its part, the euro touched a minimum of 1.0803 and a maximum of 1.0856 dollars per euro.

At the close, the interbank prices for sale were located at 23.9085 pesos per dollar, 1.2336 dollars per pound and at 1.0856 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE