The peso closed the session with an appreciation of 1.26% or 28.6 cents, trading around 22.47 pesos per dollar, erasing most of the losses from the previous session.

The rebound in favor of the peso was due to a greater appetite for risk in the financial markets during the American session, particularly in the capital market, after the quarterly results of the main banks in the United States were published, where the losses They were lower than expected and increases in profits were observed in market operations.

The dollar also lost ground after Federal Reserve Governor Lael Brainard said it is probably appropriate to stop guiding monetary policy toward stabilization and instead move it towards a flexible stance, with the goal of boosting recovery. of employment and the return of inflation to the 2% target. He also noted that it may be appropriate to avoid raising the interest rate once inflation returns to its target.

Lael Brainard is a voting member on monetary policy decisions within the Federal Open Market Committee (FOMC). The expectation of a more flexible monetary stance also contributes to the optimism of the capital market in the United States.

The peso and other currencies

The dollar weighted index closed down 0.23%, allowing most currencies to gain ground.

The Brazilian real appreciated 0.84%, while the euro rose 0.42% to $ 1.1393 per euro, temporarily overcoming the key resistance of $ 1.1409. In the year, the maximum price of the euro was $ 1,1495 per euro.

Indicators of Banxico

It should be remembered that the euro is strengthening in the face of accommodative comments by Federal Reserve officials, since it implies that US monetary policy could converge towards the position of the European Central Bank.

Tomorrow the market will be on the lookout for US industrial production statistics for June, where monthly growth of 4 percent is likely to be seen.

If a figure is published below expectations, capital markets could erase part of today’s earnings and see a higher perception of risk.

Interbank quotes

In the session, the peso-dollar exchange rate reached a minimum of 22.4277 and a maximum of 22.7798 pesos per dollar, the euro-peso reached a minimum of 25.5650 and a maximum of 25.8946 pesos per euro in the interbank prices for sale.

For its part, the euro touched a minimum of 1.1325 and a maximum of $ 1.1409 per euro.

At the close, the interbank quotations for sale were 22.4748 pesos per dollar, 1.2552 dollars per pound and 1.1392 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE