In emerging markets, the peso is the best-positioned currency


In the last five weeks, the Mexican currency has appreciated 6.09% against the dollar, while the South African rand revalued 4.78 percent.

From last December 14 to date, the peso is the best-positioned currency of the emerging economies against the US dollar, after recording an appreciation of 6.09%, equivalent to a gain of 1.24 pesos, due to the inflow of foreign flows to the country.

The South African rand is the second currency most revalued to present an appreciation of 4.78% to 13.6989 rands to the dollar, followed by the Brazilian real with an appreciation of 3.90% to 3.7642 reais per dollar in the same period.

The Argentine peso also advanced against the US currency to present a gain of 2.90% to 37.01 pesos per dollar, while the Russian ruble registered a rebound of 0.91% to 66.1517 rubles to the dollar and the Colombian peso appreciated 0.80% to 3.167.94 pesos per dollar.

In the last five weeks, the Mexican money market entered foreign investment portfolio for a total amount of 97.330 million pesos (5,115 million dollars), going from 2,091 to 2,189 billion pesos.

The largest instrument demanded by foreign investors was the long-term M bond, after buying 52,354 million pesos, followed by certificates from the Federal Treasury for 42,571 million pesos.

The third most requested paper by foreigners was the Udibono for 1,241 million pesos and the Bondes D that bought an amount of 1,164 million pesos.

The week starts badly

Despite its good performance in the last month and a half, the exchange rate started the week with a depreciation of 0.25% to place its quotation at levels of 19.0510 pesos per greenback.

The CIBanco senior economic analyst, James Salazar, stressed that the strength of the peso-dollarexchange rate is mainly explained by the entry of foreign investment into the country, derived from the attractive performance offered by the Mexican market, which exceeds 500 points with respect to to the American papers.

The specialist mentioned that there are other elements that explain the revaluation of the Mexican peso as the policy of the Federal Reserve of a lower aggressive rate hike, in addition, of the perception of a lower risk of investing the Mexican market and the possible solution of the war commercial between the United States and China.

On the other hand, the exchange analysts of Intercam Casa de Bolsa said from the point of view of technical analysis, in the short term, the peso supports a support level at 18.90 pesos per dollar and the resistance price stands at 19.10 pesos by green ticket.

Source: El Economista

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