the Mexican peso depreciated against American dollar this Friday. The local currency extended its losses for the fourth consecutive day, in a market worried about the possibility that rate hikes could cause a recession in the global economy.
the exchange rate closed this session at the level of 19.8289 units per dollar against a record of 19.7321 units yesterday, with official data from the Bank of Mexico (Banxico). That means a loss of 9.68 cents for the coin, equal to 0.49 percent.
The cross operated in an open range between a maximum of 19.8831 units and a minimum of 19.7418 units. the dollar index (DXY), which compares the dollar against a basket of six strong benchmark currencies, rose 0.14% to close at 104.70.
This week the fight against inflation began a new stage, with authorities such as the Federal Reserve and the Bank of Mexico signaling a slowdown in the pace of rate hikes, but anticipating a long period of hikes and high interest rates.
The fall in the peso also occurred due to an increase in market volatility due to the atypical behavior of this Friday due to the expiration of futures and options contracts in the United States, known as “Quadruple Witching Day”.
“Both the Federal Reserve and the European Central Bank estimated that inflation will take longer to fall. Given this, and although at a slower pace, they anticipate that interest rates will continue to rise and remain high for longer,” said Ve. for more.
Nervousness in the market led the peso to register a moderate weekly drop, compared to 19.7787 pesos at the close of last Friday, the local currency lost 5.02 cents or a variation of 0.25 percent. This is their third straight weekly loss.