MEXICO.- The peso fell against the dollar this Monday to its highest level in three months; the local currency depreciated for the fifth consecutive day in an environment where capital markets registered negative.
The exchange rate ended the day at 20.6420 units per greenback against a close of 20.5220 pesos per dollar on Friday, with data from the Bank of Mexico (Banxico).
Meanwhile, bond yields remained higher amid concerns that global economic growth, particularly the US, will trigger higher inflation and rate hikes earlier than expected.
At the bank window, the dollar is sold at 21.12 pesos, according to Citibanamex.
The movement in the price meant a loss of 12 cents for the local currency, which is equivalent to a variation of 0.58 percent. The pair traded in a range between a maximum of 20.8333 units and a minimum of 20.4533 pesos.
The Bloomberg index, which measures the strength of the greenback against a basket of ten currencies, fell 0.21 percent, to 1,122 points.
Latin American currencies continue to be the most vulnerable against the main crosses of the US currency.
Equity markets started the week bearish on Monday in Europe, following the timid trend seen late last week in many benchmark indices. Market consolidations continue almost everywhere amid a subdued appetite for riskier assets by investors, said Pierre Veyret, technical analyst at ActivTrades.
Since its last positive close of 19.9530 units last Monday, the peso has left 68.90 cents or 3.45% in operations. In its worst record of the day, today the pair reached a maximum not seen since the beginning of November.
On the other hand, Mexico only has natural gas inventories for 1.5 to 3 days, so electricity shortages are not ruled out in some regions of the country.
With information from El Financiero and El Economista