The peso closed yesterday at its lowest level in the year as it traded against the dollar at 18.94, although we saw it in intra day play a low at 18.91. A move that could be due according to some experts to the publication of a positive inflation data for the currency.
Although this reached 5.29%, accumulating 10 consecutive months of increases, the sub-indices related to exchange depreciation and energy prices were lower.
A news that relaxes the pressures of the Bank of Mexico to re-raise the reference rate. Recall that the entity will make a decision next Thursday.
The currency, close to where it has to be
In an interview with Bloomberg, Agustin Carstens said yesterday that the peso is close to where it has to be, although still undervalued by 10%. The Governor of the Bank of Mexico, present these days at the 80th Banking Conference held in Acapulco, said however that they continue to closely monitor inflation so they do not get out of hand.
And also what happens in the United States. “We still have the uncertainty associated with the bilateral treaties with our neighboring country. Although, even taking that into account, and given other fundamentals of the economy, I still think the peso is undervalued. ”
One of the Best Performances of The Year
After the fears raised by the election of Donald Trump as a new White House tenant, and that led to an increase of the peso against the dollar above 21, the truth is that the currency has managed to recover and carry out one of the best behaviors In what we have in 2017.
Above all, after the White House affirmed that they will do everything possible to achieve a commercial agreement that is beneficial for both parties. Comments that have helped the peso have strengthened 9.3% this year, the best record among major currencies, only behind the South African Rand.