The peso drops for the third session and ‘breaks the ceiling’ of 20 units per dollar – El Financiero

The The Mexican currency fell In a session on Monday For the third day in a row yearBreaking the $20 ceilingBecause of the dollar’s appreciation, new fears emerged that the Federal Reserve would raise interest rates to control inflation and fears of a global economic slowdown.

The The Mexican peso was trading at 20.4565 to the dollar, with a drop of 2.38 per cent and a break of the 20-peso ceiling after 17 consecutive days below this level. also, Records the largest decline since September 23, 2020when it lost 2.82 percent.

“The dollar strengthening The reason for this is that inflation in the United States last May released last Friday at an annual rate of 8.6 percent, and it reached a new maximum since December, said Gabriella Seller, director of economic analysis, Biz Bank. 1981, confirming the continuation of inflationary pressures.

He added that the market interpreted the data as “a sign that Annual inflation could continue to reach new highs In the coming months, so there is now speculation that the Fed will abandon its easy monetary stance more aggressively.”

In the foreign exchange market, most currencies fell, except for the Russian ruble, which appreciated by 4.3 percent. The declining currency was the Norwegian krone at 2.41 percent, followed by the Israeli shekel at 2.28 percent, the New Zealand dollar at 2 percent, the South African rand at 1.92 percent, and the Australian dollar at 1.94 percent.

Among the related currencies, the euro was down 1 percent and the pound sterling by 1.58 percent.

Meanwhile, West Texas Intermediate crude is trading at $120.45 a barrel, down 0.52 percent, and Brent is down 0.57 percent to $122.83 a barrel.

For its part, gold lost 2.67 percent to $ 1821 an ounce, before speculation about the pace of increases in the Federal Reserve interest rate returned.

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