dollar to peso exchange rate
The exchange rate was listed at 18.83 pesos per dollar at the opening of this Tuesday, a depreciation of 0.31% compared to the closing price of Monday registered by the Bank of Mexico
The strengthening of the dollar was due to the imminent rise in the interest rate in the United States, of 25 base points, taking it to a level between 4.50% and 4.75%.
In addition, increased risk aversion was triggered by fears of a recession in Europe, which also encouraged the strengthening of the dollar this morning.
“Despite the fact that the Eurozone GDP showed growth during the fourth quarter of 2022, several countries contracted: Germany, Lithuania, Austria, Italy and the Czech Republic (the latter outside the Eurozone). This confirms the risk of a slowdown economy and recession for some countries in the first months of 2023,” said Banco Base.
Investors are betting that the US central bank will raise interest rates by 25 basis points in its announcement on Wednesday. A day later, the European Central Bank (ECB) and the Bank of England will release their rate decisions.
At the local level, it was revealed on Tuesday that although the economy moderated its pace to 0.4% during the fourth quarter, it grew more than expected, showing an expansion of 3% in the whole of last year.
For the rest of the day, the exchange rate was expected to oscillate in a range of 18.74 to 18.88 pesos per dollar, according to analysts from the firm CI Banco.
With information from Reuters.
