The peso closed the session with a depreciation of 0.73% or 14.5 cents, trading around 20.12 pesos per dollar, with the exchange rate touching a minimum of 19.8546 and a maximum of 20.2387 pesos per dollar.

In the exchange market, the Mexican peso was the second most depreciated currency, after the Colombian peso, which depreciated 2.02 percent.

In the foreign exchange market, a strengthening of the US dollar was observed, whose weighted index closed with an advance of 0.20%, accumulating an increase of 0.55% in the last two sessions.

During the session, the performance of financial markets was mixed, as there was an increase in the perception of risk.

The Global Risk Perception Base Indicator (PPI) stood at 153 units, which means perception by medium risk.

Within the indicator, the foreign exchange, money and country risk components showed consistent results with a higher perception of risk, while the commodities and capital market components showed mixed results.

This occurred due to the increase in the number of coronavirus cases globally, since an average of 634 thousand new cases have been registered during January, the second worst month on record after December.

This has raised the expectation that the virus may spread faster than vaccination, forcing some governments to toughen or extend their containment measures.

The peso

In the short term, caution is likely to prevail among exchange market participants, since relevant economic information is published during the week, highlighting the initial estimates of economic growth for the fourth quarter of 2020.

One factor that could generate a greater perception of relative risk in Mexico is the discussion in Congress of the reform of the Bank of Mexico Law. If signs are made known that the reform could be approved in the coming months, additional upward pressure on the exchange rate cannot be ruled out, as happened in December 2020.

In the session, the euro touched a minimum of 1.2116 and a maximum of 1.2183 dollars per euro. Finally, the euro peso touched a minimum of 24.1730 and a maximum of 24.5294 pesos per euro.

At the close, the interbank quotes for sale stood at 20.1198 pesos per dollar, 1.3670 dollars per pound and 1.2141 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE