Friday, January 27, 2023

peso falls more than 1% due to strength in united states jobs

Mexican peso strongly supported against U.S. Dollar on Friday. The local currency lost ground following the publication of a positive report on the labor market, fueled by a wave of aversion to risky assets in the markets. America,

report of nonfarm payrolls It showed that US employers added 263,000 jobs in November, more than expected. The intent of the figure can be complicated federal Reserve To moderate the rate of increase in interest rates.

exchange rate ended the day at a level of 19.4196 units compared to yesterday’s record 19.1656 units, with official data bank of mexico (Banksiko). This meant a negative movement for the local currency of 25.40 cents, or 1.33 percent.

The crossing operated in a limited range between a maximum of 19.4444 units and a minimum of 19.1082 units. dollar index (DXY), which measures the greenback against a basket of six stronger reference currencies, declined 0.20% to level at 104.52 points.

The depreciation of the peso was due to a general strengthening of the dollar, whose weighted index rose 0.22% on expectations that federal Reserve It will continue to raise its interest rate in 2023, Banco Base said in a note to customers.

Just on Wednesday, the market was intrigued by a speech by Fed Chairman Jerome Powell, who noted that the central bank may begin to reduce the pace of raising the reference rate. The decline in inflation published yesterday supported this expectation.

Employment data in the United States also turned the peso negative during the week, closing at 19.3145 units from last Friday, meaning a loss of 10.51 cents or 0.54 percent. The dollar index registered a decline of 1.44 per cent.

jose.rivera@eleconomista.mx

Nation World News Desk
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