The peso closed the session with few changes compared to yesterday’s close, showing a moderate depreciation of 0.06%, trading around 22.35 pesos per dollar.

During the session, the exchange rate ranged from a minimum of 22.1877 to a maximum of 22.4234 pesos per dollar, without a trend being defined.

During the morning, the upward pressure on the exchange rate was mainly due to an increase in political tensions between the United States and China, after the US government ordered the closure of the Chinese consulate in Houston, Texas.

Later, in the United States Congress, the Democratic and Republican party benches announced that they are negotiating the next fiscal stimulus package, sending the signal that they could approve it before the end of the month.

Likewise, it was revealed that the United States government has placed an order for 600 million doses of the coronavirus vaccine developed by Pfizer.

Although the vaccines are still in the testing phase, the measure indicates that once approved, it will begin a massive vaccination process, allowing the reopening and normalization of economic activity in the United States.

This allowed the exchange rate to drop temporarily to a minimum of 22,1877 pesos per dollar.

The peso and the capital

In Mexico there was also a greater appetite for risk after the presentation of a proposal to reform the pension system.

The Secretary of the Treasury, Arturo Herrera, clarified that it is a fiscally neutral reform and that it seeks to promote investment in infrastructure, while the Business Coordinating Council (CCE) pointed out that the reform is a historical event, achieved thanks to the collaboration between the government and businessmen, and necessary to avoid a crisis in the retirement savings system.

In the short term, the CCE’s comment reduces uncertainty about the relationship between the government and private initiative. The reform will be discussed for approval in the Chamber of Deputies.

It is important to note that in the capital market, the CPI of the Mexican Stock Exchange was one of the indexes with the highest global gains, registering a 1.67% advance to 37,496.52 points.

Indicators of Banxico

It should be noted that in the exchange market the performance of the main crosses was mixed, with strong gains for currencies such as the Brazilian real with 1.14%, the Chilean peso with 0.65% and the euro with 0.40%, while the Norwegian krone lost 0.46 %, the Russian ruble fell 0.45% and the South African rand 0.42 percent.

Foreign exchange

In the session, the peso-dollar reached a minimum of 22.1877 and a maximum of 22.4234 pesos per euro in the interbank prices for sale. For its part, the euro touched a minimum of 1.1507 and a maximum of $ 1.1601 per euro.

Finally, the euro peso touched a minimum of 25.6868 and a maximum of 25.9232 pesos per euro.

At the close, the interbank quotations for sale were 22.3481 pesos per dollar, 1.2741 dollars per pound and 1.1574 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE