The Mexican peso shows a rebound against the dollar this Tuesday after having touched 20 units in the previous session. According to Bloomberg data, the Mexican peso appreciated by 0.43% against the dollar, bringing the exchange rate to 19.89 units, 8 cents less than the close on Monday, October 21.
CIBanco analysts point out that, in the absence of major economic and financial references, attention is focused on electoral uncertainty in the United States and on bets regarding the next steps of the Federal Reserve. In the second week of October, hedge funds and asset managers reduced their short positions in dollars by about 8 billion dollars, according to data published by the Commodity Futures Trading Commission and compiled by Bloomberg.
According to specialists, it is possible that the exchange rate will reach 19.77 pesos per dollar this Tuesday, October 22. "With just a few weeks left until the U.S. elections, the market can no longer ignore the risks," wrote Mark McCormick, global head of foreign exchange and emerging markets strategy at TD Securities, in a note on Monday.
In bank windows, the dollar is sold at 20.36 pesos and bought at 19.26 units, according to Citibanamex report. The dollar index (DXY), which measures the strength of the dollar against a basket of six major currencies, registers a decline of just 0.03% to 103.98 points, while the Bloomberg dollar index (BBDXY) falls by 0.04% to 1,256.81 units.
In the money market, the yield on the 10-year M bond in Mexico stands at 10.43%, while in the United States it reaches 4.19%. Among the currencies gaining ground against the dollar are the Chilean peso with 0.64%, the Australian dollar with 0.50%, the New Zealand dollar with 0.46%, the South African rand with 0.43%, and the Colombian peso with 0.37%.
This information comes from Bloomberg.
