The Mexican peso showed moderate gains due to the weakening of the weighted dollar index, caused by expectations of an economic slowdown in the United States. According to figures from the Bank of Mexico (Banxico), the exchange rate stood at 20.2582 pesos per dollar, reflecting an appreciation of 0.51% or 10.41 cents compared to the previous close.
Gabriela Siller, director of economic analysis at Banco Base, mentioned that this behavior is due to indicators that reflect the decrease in economic activity in the United States, which could lead the Federal Reserve to cut interest rates several times during the year. It is expected that, for the moment, the Fed will keep the rate unchanged within a range of 4.25 to 4.50%.
On the other hand, the dollar index (DXY), which measures the strength of the dollar against a basket of six currencies from developed countries, recorded a decrease of 0.50%, standing at 103.41 points. Meanwhile, the Bloomberg dollar index (BBDXY) operated at 1,265.67 units and declined by 0.41%.
At bank windows, the price of the dollar was located at 20.81 pesos per unit, according to data from Citibanamex. Other currencies that also appreciated against the dollar were the Russian ruble (2.52%), Chilean peso (1.18%), Colombian peso (1.15%), Czech koruna (0.86%), Polish zloty (0.81%), Bulgarian lev (0.76%), Romanian leu (0.74%), Hungarian forint (0.71%), and Brazilian real (0.69%).
Regarding the money market, the yield on the 10-year bond in the United States is 4.21%, while the 10-year bond in Mexico remains at 9.87%.
