Friday, January 11, 2019

Peso spins its seventh week of earnings, the longest streak since 2008


Despite the slight fall of the Mexican peso on the day, the currency managed to reach its highest level since September 2018 and on the weekly balance sheet it ran its seventh week of earnings, the longest since 2008.



The Bank of Mexico reported that the interbank dollar closed this Friday in 19.14 units, after falling 0.08 percent.



In bank window, the green ticket is sold in 19.45 units, according to Citibanamex data.



During the session, the exchange rate of the peso against the dollar peaked at 19.1870 units, while the minimum rate was at 19.0599 units, on the wholesale market.



According to information from Bloomberg, in the second week of operations in 2019, the Mexican currency was placed as the fourth with the best performance among the most negotiated at a global level, by winning 1.17 percent.



The positive behavior of the peso came after a week in which the minutes of the Federal Reserve confirmed that they will be patient and flexible with the measures implemented to continue raising interest rates.

He also benefited from the weakness of the dollar at the global level, in addition to positive statements by the Treasury Secretary, Carlos Urzúa, who foresees that the greenback will continue going down to the 19 pesos and "with luck" beyond.

In a report by Banco Base, the weakening of the dollar during today's operations is due to the publication of inflation in the United States, which stood at an annual rate of 1.9 percent in December, below 2.2 percent in November.

This was the result of a negative monthly inflation of 0.1 percent, the first decline since March 2018.



At the local level, the strength of the peso was supported by the Ministry of Finance, which announced on Thursday the hiring of oil coverages that they assure a price of 55 dollars per barrel for the national oil production of 2019.



"The continuity of orthodox economic policies associated with fiscal prudence, such as the implementation of oil hedges, sent a positive signal to the market, which contributed to the appreciation of the peso in overnight operations (overnight), commented Gabriela Siller, director of economic and financial analysis at Banco Base in the statement.

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