The weight It depreciated against the dollar on Thursday after developed market debt remained vulnerable as 10-year government bonds rose to their highest level in a year.
The national currency temporarily crossed the 21-unit mark, a level not seen since November 6. Held the first place one of the worst performing currencies among emerging market currencies.
At 12:07 PM, it jumped to 9:03 PM, following the release of the Fix exchange rate. This performance was accompanied by sales in the US capital markets.
According to data from Banco de México, the currency depreciated 1.62 percent, to 20.75 units, this in the interbank sphere.
At the bank window, the dollar is sold at 21.26 pesos, according to Citibanamex.
The currency hit a low of 20.3714 units, at 5:46 PM on Thursday and since then he found his way north alone
The Bloomberg Index, which measures the strength of the dollar against a basket of ten currencies, rose 0.44 percent to 1,125.66 points.
The 10-year government bond yield is up 7 basis points to nearly 1.45 percent, to a maximum of 1.4664 percent, a level that has not been reached since February 21, 2020.
Fed Chairman Jerome Powell said he views the liquidation as one “statement of confidence” about the economic outlook.
The European Central Bank is concerned that soaring yields could hurt the economic recovery, and Australia’s central institution has begun buying bonds to maintain its return target.
While investors focus on the outlook for inflation and economic growth, Powell stressed in his testimony to Congress just how far the U.S. labor market is from top employment.
With regard to economic data, the weekly report of unemployment insurance claims showed that in the week ending February 20, 730 thousand new requests for support were reported, a decrease of 55 thousand units compared to the previous week and in contrast to the market forecast that expects 825 thousand.
Meanwhile, applications for unemployment assistance continue, decreased from 4.46 million to 4.41 million.
Similarly, the second estimate of GDP growth in the United States for the last quarter of 2020 was released, showing a slight upward revision from 4 percent to 4 percent previously recorded to 4.1 percent (quarterly year-on-year).
Gabriela Siller, director of economic and financial analysis at Banco Base, pointed out that the upward movement in the exchange rate is related to external factors and to a greater aversion to risks to the Mexican economy.
“There is a contagion effect from the South African rand and the Turkish lira, which depreciate 2.07 percent and 1.12 percent respectively. On the one hand, the Turkish lira is losing ground on speculation that the country’s central bank could be under pressure not to raise interest rates further after the one-month repo rate was revised up 675 basis points over the past four months. months, ”he said
Siller added that there is still a higher risk perception in Mexico. In the future, it is expected that the economic recovery of Mexico be slow Due to the limited vaccination process and the implementation of policy measures and legislative changes that hinder investment, the recently approved reform of the electricity law is highlighted in the Chamber of Deputies.
Likewise, data released by the IGAE in December shows a stagnation in the economic recovery due to the effects of the pandemic.
Indicators released by the National Institute of Statistics and Geography (Inegi) showed that the recovery lost momentum late last year, with only strong US demand keeping it from slowing further.
In the last quarter of 2020, GDP rose by 3.3 percent compared to the previous quarter, Inegi reports.
Meanwhile, the IGAE showed that the economy grew 0.1% in real terms in December compared to November.
This is the lowest monthly growth rate since June 2020, when the economic recovery started after the deep fall in March-May caused by the pandemic.
The slowdown is mainly driven by the second wave of coronavirus infections that took the number of daily cases to new heights in late November and continued to rise until mid-January 2021.
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