The Mexican peso recorded another gain against the dollar at the end of the day on Friday trading at 16.73 pesos per unit, its best level since December 2015, according to data from the Bank of Mexico (Banxico).
Financial analysts agreed that the appreciation of the local currency is a consequence of the expectations that investors have about the national economy, since a greater recovery is expected during the second half of the year.
Similarly, they explained that it is the result of a greater inflow of foreign currency through Foreign Direct Investment (FDI) and remittance flows.
“In the short term, it is possible that the peso continues to appreciate, since international investors want to continue taking advantage of the returns that the currency can provide,” said Gabriela Siller, director of economic and financial analysis at Banco BASE.
During the session, the Mexican currency touched a minimum of 16.71 pesos per green bill, as well as a maximum of 16.84 pesos per unit.
During the day, he highlighted that the Fitch Ratings agency cut Petróleos Mexicanos (Pemex)’s grade to ‘B+’, from ‘BB-‘, due to the company’s weak operating performance and its long-term financial management.
With these results, the peso closed with a weekly gain of 1.88 percent against the dollar, after last week it ended with a loss of 0.53 percent.
“The weekly behavior of the local currency was related to the weakness of the dollar in the exchange markets, given the drop in inflation in the United States and the expectation that the Federal Reserve (FED) will moderate its monetary stance,” said the Center for Public Finance Studies (CEFP) in a report.
In the following week, investors’ attention will be focused on the quarterly reporting season, both in the United States and Mexico, corresponding to the period from April to June 2023.
Locally, statistics on retail sales to May will be released, which will give a signal on the behavior of consumption, according to Citibanamex analysts.
2023-07-14 22:28:28
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