The exchange rate closed this Tuesday’s session at 19.9478 pesos per dollar, an appreciation of 0.14% for the Mexican currency compared to the previous closing, according to data from Banxico.
After two sessions in a row with losses, the peso gained ground due to the rise in international oil prices and a weakness in the US currency, according to a report from the Base financial group.
“The price of oil closed the session gaining 2.17%, trading at 72.02 dollars per barrel, as tensions between Israel and Iran persist, which may limit the supply of oil in the region,” he indicated in an analysis after the closing of the day.
“The upward pressures on the price of oil were due to greater optimism around demand, following the measures taken by the People’s Bank of China to support economic growth in that country,” he added.
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He detailed that the US dollar remained weak for most of the session, as although some Federal Reserve officials favor a cautious approach to the following interest rate cuts in the United States, the market continues to discount an adjustment of 50 basis points before the end of the year.
The Monex financial group considered that the peso benefited from lower volatility due to political factors in Mexico and the United States, although it showed weakness after the evaluation of weak economic data.
“Towards overnight, we would expect the peso to oscillate in a range between $19.80 and $20.02, considering the resistance zone around $20.00 and waiting for the local retail sales report tomorrow,” he stated in a report.
The Mexican economy measured through the Global Indicator of Economic Activity (IGAE) contracted 0.3% in August compared to the previous month, the first drop since April, according to seasonally adjusted figures published this Tuesday by Inegi.
At an annual rate, the IGAE expanded 1%, the weakest performance since last April.
With information from Francisco Rivera
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