“Superweight” took off; Here’s how the dollar closed the week

"Superweight" took off;  Here's how the dollar closed the week

In the end, the dollar reached the 18.76 Mexican pesos in its interbank cash version, according to Banxico.

On the last day, the Mexican currency advanced another 0.41% and marked a weekly growth of 2.01%, the best performance it has had since August 2022.

During the week, the dollar fell 38.60 cents.

The national currency has not been in such a strong position since February 2020, when fears of the then-nascent pandemic hit the US rating.

The “super weightis the currency that has advanced the most so far in 2023, helped by positive market sentiment amid positive expectations of less pressure on commodity prices after the US released data that reveals how it is starting to pull back inflation, as Cleofas Torres Rivera, a financial analyst in Chihuahua, explained on Thursday.

“We continue to see foreign offers as local demand begins to decline, which seems to show that we are already assimilating the new levels of the exchange rate in our country,” he commented.

The Mexican peso was chosen as a risky asset as foreign exchange market participants decrease the number of dollars they hold.

Gaby Siller, economist analyst at Grupo Base, described that the dollar is at its lowest level since February 20, 2020 and that “in the Chicago futures market, positions that anticipate a depreciation of the peso continue to increase, reaching the second week in a row of a new all-time high. This implies that the market expects the exchange rate to show a rebound in the medium term.”

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