Peso depreciates for the sixth day after local GDP data

The Mexican peso depreciated against him American dollar this Thursday. The local currency lost ground for the sixth consecutive day, after it was disclosed that the Mexican economy contracted more than expected in the third quarter.

The exchange rate closed the session at the level of 21.5564 units against the data of 21.4472 units yesterday, with data from Bank of Mexico (Banxico). This means a weight loss of 10.99 cents, or 0.51 percent.

The pair moved between a maximum of 21.5968 points (lower than the ceiling registered yesterday) and a minimum of 21.3631 units. At the close, the Dollar Index (DXY), which measures the greenback with six coins, fell -0.11% to 96.77 points.

In six days with losses, from 20.6688 units, the movement for the peso is 88.76 cents or 4.29 percent. In the year, from a level of 19.9500 units, the currency loses 1 peso and 60 cents or 8.05 percent.

Mexican economy

The Mexican economy contracted 0.4% in the third quarter, more than was preliminarily estimated and expected by the market, in its first contraction since the recovery began after the impact of the pandemic.

Some analysts mentioned that concerns persisted on the day about an announcement by President Andrés Manuel López Obrador, who proposes the Undersecretary of Finance, Victoria Rodríguez, for Banxico.

“Of particular importance will be that the autonomy of the central bank persists, both in its operation and in the perception of market participants,” Citibanamex analysts said in a report for this session.

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