The Mexican peso advances against the US dollar


This Wednesday the the session closed with moderate appreciation of 0.26 percent or 4.8 cents, to trade around 18.82 pesos to the dollar, due to the publication of positive economic indicators in China.

These indicators include, in particular, the economic growth of the first quarter, which stood at an annual rate of 6.4%, surpassing market expectations.

According to Banco Base, during most of the session the exchange rate remained stable, with little economic news relevant to market participants, while lower liquidity associated with Holy Week was observed.

On Thursday and Friday, financial markets will remain closed in Mexico, but the exchange rate may see movements due to speculation in other markets, so episodes of volatility can not be ruled out.

On this day was relevant the reaction of the political and legal environment to the memorandum released yesterday by the Mexican Presidency, which ordered the Secretariats of the Interior, Public Education and Finance and Public Credit to ignore the constitutional guidelines established by the educational reform. .

Market participants did not react to the presidential directive, but jurists described the memorandum as illegal, which could lead to doubts in the financial markets about the possible actions of the federal government and the risk that it intends to exceed its powers.

That is why Banco Base considered that the memorandum represents a risk to the real economy, as it may contribute to uncertainty, which in turn could inhibit investment, whereas for the financial economy, greater uncertainty could be the Mexican peso is more vulnerable to speculation.

Against this background, the free dollar lost four cents in relation to the Mexican currency, compared to the closing of yesterday, when it was sold up to 19.17 pesos and purchased at a minimum price of 17.65 pesos in banks in Mexico City.


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