The two largest economic powers in the world, China and the United States, announced they will hold a new trade negotiations meeting in October. The peso gained ground for the third consecutive day, hand in hand with other Latin American currencies such as the Peruvian sun and the Colombian and Chilean pesos.
In three days of earnings, according to the Mexican central bank's record, the peso appreciated 44.95 cents against its last negative close of 20.1435 units per greenback, which is so far the highest in 2019. The movement is equivalent to a cumulative variation of 2.23 percent. Its lowest record today was 19.6159 pesos.
External context help
Other geopolitical factors benefited the weight. In the United Kingdom, the House of Commons voted against a Brexit without agreement. In Hong Kong, an extradition law initiative to China that caused three months of protests in the financial center was suspended. Positive employment data in the United States were relevant.
"The rise in the exchange rate in August, despite the high differential between local and US rates, was due to external factors. If the global environment stabilizes, the local market has advantages over other emerging markets. We maintain our average estimate of 19.42 units for 2019 ", highlights an Invex analysis.
Shelters are weakened
The Dollar Index (DXY), which measures the strength of the US currency against a basket of six reference currencies, registered a movement of -0.05% and was located at a level of 98.40 units. Cash gold prices fell -2.21% to $ 1,518 per troy ounce, given a better outlook for risk investments.