Mexico City, Mexico — At the beginning of today’s foreign exchange operations, the dollar sold up to 20.29 pesos with a slight decrease of two cents compared to the close of Friday, and purchased at a minimum price of 18.80 pesos in Mexico City banks.
According to Banco BASE, the strengthening of the dollar is due to the announcement by the US Treasury Secretary, Steven Mnuchin, that the US will lift trade barriers imposed on China. This, he said, temporarily decreases trade tensions between the two.
However, the banks says depreciation of the peso has been related to an increase in speculation against the currency and because uncertainty continues about the future of the renegotiation of the North American Free Trade Agreement (NAFTA).
The financial institution stressed that this week, the market will remain attentive to news related to the progress of the renegotiation of NAFTA as it anticipates talks will continue in Washington.
They added that they estimate the exchange rate to remain between 19.85 and 20.05 pesos per dollar in interbank transactions.
In the Official Gazette of the Federation, the Bank of Mexico (Banxico) reports the exchange rate to settle operations denominated in foreign currency payable in the country is at 19.9319 pesos.