The peso closed the session with a depreciation of 0.22% or 4.4 cents, trading around 19.87 pesos per dollar, with the exchange rate trading between a minimum of 19.8000 and a maximum of 19.8986 pesos.

In the wide basket of main crosses, the peso was the fifth most depreciated currency, behind the Peruvian sol that lost 1.32%, the Colombian peso with 0.32%, the Czech crown with 0.24% and the Japanese yen with 0.23 percent.

The depreciation of the Mexican peso was partially associated with the depreciation of the Peruvian sol, which reached its worst level against the dollar at 3.8460 soles per dollar.

The depreciation of the sun is due to the fact that the leftist candidate Pedro Castillo showed a significant advantage in polls with 41.5% of those polled giving their support, compared to 21.5% for the right-wing candidate, Keiko Fujimori.

Likewise, the elections will be held on June 6, so an increase in risk aversion could be observed in Peru during the last days of April and in May.

It is important to mention that, although there is no close economic relationship between Mexico and Peru, the reaction of the Mexican peso is due to the fact that the national currency is used to speculate on events in other emerging economies, particularly in Latin American economies.

The peso

It should be noted that, among the currencies of Latin American economies, only the Chilean peso and the Brazilian real appreciated by 0.93% and 0.69% respectively.

This is because the price of WTI oil cut its losses to only 0.37%, trading at 61.91 dollars per barrel, while the price of copper advanced 1.98% to 9,771 dollars per metric ton, touching a maximum of 9,783 dollars, level not seen since 2011.

The market is also awaiting relevant economic events and information during the week, in particular the Federal Reserve‘s monetary policy announcement scheduled for Wednesday at 1:00 p.m., the publication of the United States GDP scheduled for Thursday. at 7:30 am and the publication of the GDP of Mexico scheduled for Friday at 6:00 am.

In the session, the euro touched a minimum of 1.2061 and a maximum of 1.2117 dollars per euro. Finally, the euro peso touched a minimum of 23.9345 and a maximum of 24.0553 pesos per euro.

At the close, the interbank quotes for sale stood at 19.8670 pesos per dollar, 1.3899 dollars per pound and 1.2087 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE