The peso closed the session with a depreciation of 0.32% or 6.9 cents, trading around 21.62 pesos per dollar, touching a maximum of 21.6593 pesos.

The depreciation of the Mexican peso occurred alongside a general strengthening of the US dollar against most of its main crosses.

Likewise, the dollar weighted index showed an advance of 0.30%, maintaining an upward trend that began on Tuesday, September 1.

It should be noted that, despite the depreciation of the peso, the volatility of the exchange rate was moderate, since financial markets remained closed in the United States for Labor Day.

After 11:00 hours, after the closing of the markets in Europe, the exchange rate oscillated in a range between 21.56 and 21.63 pesos per dollar most of the time, with some sudden movements as a result of low liquidity.

In the session, the most depreciated currencies were the British pound, the South African rand, the New Zealand dollar and the Russian ruble. The depreciation of the pound was due to internal political factors, where there is still uncertainty about the possibility of a trade agreement between the United Kingdom and the European Union.

On the other hand, other currencies such as the rand or the Russian ruble lost to the weakness of the commodity market.

Peso and oil

The WTI closed the session trading at 39.07 dollars per barrel, which is equivalent to a contraction in its price of 1.76%, while the price of Brent fell by 1.52% and closed trading at 42.01 dollars per barrel.

The downward pressure on the price of oil occurred due to the expectation of a lower global demand for oil.

Tomorrow the liquidity of the financial markets will normalize, so a return of volatility could be observed in the exchange market.

It is important to mention that little relevant economic information will be published in Tuesday’s session, so the exchange rate movements will be based on news about the coronavirus and on the performance of the capital market, which showed strong falls in the United States during the previous week.

In the session, the exchange rate touched a minimum of 21.5155 and a maximum of 21.6593 pesos, the euro touched a minimum of 1.1812 and a maximum of 1.1849 dollars per euro. Finally, the euro peso touched a minimum of 25.4778 and a maximum of 25.6074 pesos per euro.

At the close, the interbank quotes for sale were located at 21.6231 pesos per dollar, 1.3206 dollars per pound and at 11 813 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE