This Friday, the Mexican peso was a ‘party’. On the one hand, the interbank dollar closed below 19 units; on the other, it recorded its ninth consecutive week in positive territory, the longest winning streak since the one observed from March to April 1999. The Bank of Mexico published that the interbank dollar closed at 18.9845 units. On the day, the peso gained 8.5 cents; that is, 0.45 per cent. In the bank window, the greenback is sold at 19.30 units, less than the 19.35 units reported on Thursday as closing by Citibanamex. The exchange rate of the peso against the dollar touched this Friday a maximum of 19.0117 units, while the minimum was located at 18.8811 units, in the wholesale market.
In the week, the peso gained 0.74 per cent. With this, he spun his ninth consecutive week in positive territory and his longest streak in 20 years, according to data from Bloomberg. In the last nine weeks, the Mexican currency accumulated an advance of 7.43 per cent, a situation that places it as the best performing among the most globally traded. The second and third positions were for the Japanese yen and the pound sterling, with appreciations of 3.58 and 3.47 per cent, in each case. The main driver of the recovery of the Mexican currency in the day was the weakness of the dollar in the international market, within a context of lack of economic news.
In the markets, confidence improved due to the agreement to reopen the US government in its entirety for three weeks. This situation contributed to lower demand for the dollar as a refuge asset. The index that measures the performance of the greenback against a basket of ten currencies fell 0.64 per cent. However, next week some volatility is expected to prevail, awaiting the first announcement of the Federal Reserve’s monetary policy year, the Brexit negotiations and the meeting of the trade negotiators of the United States and China. On another front, a favourable performance was reported in the oil market, a situation that also contributes to the purchase of the Mexican currency.
The price of West Texas crude rose 0.94 per cent to 53.63 dollars per barrel, while the Brent rate rose 0.75 per cent to 61.55 dollars. Internally, he stressed that in the auction to renew the expiration of foreign exchange hedges, for a period of 31 days, the demand was one thousand 090 million dollars, 5.45 times higher than the 200 million offered. The exchange rate was supported by 18.88 units in the wholesale market. While the resistance is located at 19.25 units.
This text was originally published in Spanish on January 25 (2019), at the Digital Edition of the economic journal “El Financiero” by Esteban Rojas.