The Mexican peso made a modest recovery on Wednesday appreciation against the dollar To end a four-day losing streak.
By the end of the session, the Mexican currency was up 1.23 percent, or 24 cents. with that, The exchange rate stood at 19.28 units per dollarAccording to Bank of Mexico (Banxico) data.
Although this was an advance against the peso, it was lower than seen earlier in the day, when the currency gained as much as 2.0 percent.
“The Weight assessment Bank of Japan Deputy Governor Shinichi Uchida indicated yesterday that the Bank of Japan's Deputy Governor Shinichi Uchida indicated the need to maintain a flexible monetary stance without changing interest rates due to the highly volatile environment in Japanese and global financial markets.
In this sense, Monex explained that the Bank of Japan's position will allow investors to find a reason to continue their investment challenges. Conduct business Or avoid these strategies altogether.
Monex said another reason for the Mexican peso to rise was “a pause in the rate-cutting cycle of Panco in August” as the central bank left interest rates at 11.00 percent this year on Thursday.
This is the value of the dollar on August 7
At bank windows, the dollar It was quoted at 19.76 units per dollar, 29 cents cheaper than Tuesday's 20.05 pesos, according to data from Citibanamex.
The most relevant event for the exchange rate is the Bank of Mexico's (Banxico) monetary policy decision this Thursday, in which most markets do not expect a cut, but rather it will remain unchanged.
So, if the Banksco decides to cut interest rates, it will come as a surprise to the markets.
The peso rallied on Wednesday, as the DXY index advanced 0.22 percent to 103.20 as the dollar strengthened globally.
The index hit its lowest in nearly seven months earlier this week as a weak jobs report on Friday fueled fears of a US recession, leading to speculation that the central bank may take emergency measures to cut borrowing costs, speculation that has already eased.
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