At the start of a week in which investors’ attention will be focused on the meeting of central banks in Jackson Hole, which begins on Thursday, and the discussion on constitutional reforms in Mexico, mainly that of the Judiciary, the peso closed with pressures against the US currency.
The Mexican currency had a daily depreciation of 0.37 percent, equivalent to 6.91 cents, to close at 18.6985 pesos per dollar spot.
According to data from the Bank of Mexico, the exchange rate operated between a maximum of 18.7770 units and a minimum of 18.6640.
It was noted that the yen appreciated against the dollar, which made trading less attractive. carry trade, which consists of borrowing in Japanese currency to invest in other global assets that favor the Mexican peso.
“We could say that the peso was affected by the strengthening of the yen at the opening, considering its implication on the strategies of carry trade. In one-day trading, we would expect the peso to fluctuate in a range between 18.63 and 18.85 pesos per dollar, considering the current trend and expecting little data on Tuesday’s agenda,” explained the economic analysis area of Monex.
The dollar depreciated internationally. According to its DXY index, which measures the performance of the US currency against a basket of six international currencies, it lost 0.57 percent, ending at 101.720 units.
The central bankers’ meeting this week in Jackson Hole, Wyoming, on August 22, 23 and 24 is the most important event of the week. This annual event, organized by the Federal Reserve Bank of Kansas City, brings together central bankers from around the world, economists, academics, and others. This year’s topic is re-evaluating the efficiency and transmission of monetary policy.
Wall Street ended Monday on the rise, continuing last week’s good run as recession fears faded, but with an eye on Friday’s speech by Federal Reserve Chairman Jerome Powell and interest rates.
The Dow Jones closed with a rise of 0.58 percent, at 40,896.53 points, and the selective S&P 500 and the Nasdaq, which rose for the eighth consecutive session, ended with gains of 0.97 and 1.37 percent, at 5,608.25 and 17,873.38 units, respectively.