The peso closed the session with little change compared to Monday’s close, showing a moderate depreciation of 0.18% or 3.9 cents and trading around 21.96 pesos per dollar.

During the first hours of the day, the exchange rate reached a maximum of 22,1068 pesos, but it recovered ground after 8:00 am, after the Federal Reserve’s decision to extend the nine programs of three months (from September to December) emergency liquidity, which includes support to companies and local governments.

This is also a sign that tomorrow the Fed statement will likely show accommodative language.

Due to the accommodative position of the Fed, gold also recovered, closing with an increase in its price of 0.78% and trading at $ 1,957.34 per ounce, after hitting a record high of $ 1,981.27 overnight.

The future gold contract with a delivery date in December reached a level of $ 2,000 per ounce during the day. The main currencies that closed the session with gains were the British pound, with an advance of 0.50%, the Japanese yen that appreciated 0.30%, the Swiss franc with 0.29% and the Australian dollar with 0.17 percent.

On the other hand, today the results for the second quarter of Pemex were announced, where a net loss of 44,337 million pesos was highlighted, which was less than the loss of 52,790 million pesos in the second quarter of 2019.

It should be noted that in the first quarter the loss was 562,251 million pesos, most of it explained by the effect of the depreciation of the peso.

The peso and oil

In the quarter, Pemex’s production was just 0.55% above the historical low, sales fell 35% at the quarterly rate and 51% at the annual rate. Gross revenues fell 85% quarterly and 89% annually, while transportation and distribution expenses rose 8.1% quarterly.

Finally, Pemex’s debt in the year accumulates an increase of 24% (reaching 107,153 million dollars) and is already equivalent to 20% of public debt (SHRFSP) and just over 50% of external debt.

Therefore, Pemex is considered one of the most important risks for the credit rating of Mexico’s sovereign debt.

However, the exchange rate did not react to the publication of the results, as the market focused on the announcement of the Federal Reserve in the United States.

In the session, the peso-dollar reached a minimum of 21.8936 and a maximum of 22,1068 pesos per dollar in the interbank prices for sale. For its part, the euro hit a low of 1.1699 and a high of $ 1.1774 per euro.

Finally, the euro peso touched a minimum of 25.6707 and a maximum of 25.9217 pesos per euro.

At the close, the interbank quotations for sale were 21.9613 pesos per dollar, 1.2936 dollars per pound and 1.1717 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE