After briefly touching 19 units per dollar in operations this Thursday, the peso gained ground and ended with an appreciation of 1.26% or 23.97 cents, at 18.7354 units per greenback, according to official data from the Bank of Mexico. (Banxico).
The foregoing in the face of a calmer market due to the prompt response of the financial authorities, after the fears that arose among investors due to a possible global banking crisis, CI Banco indicated in a note.
The exchange rate registered a maximum price of 19.1784 units and a minimum of 18.7267 units per dollar.
The Dollar Index (DXY), which measures the strength of the US currency against a basket of six strong currencies, fell 0.20% to 104.44 points.
Despite this Thursday’s gain, in the last week the peso accumulated a fall of 4.15%, since the collapse of Silicon Valley Bank was announced, news that caused strong volatility in the global financial market.
“The appreciation was the result of a decrease in risk aversion in the global financial market, after the largest banks in the United States together agreed to make deposits totaling 30,000 million dollars in First Republic Bank, in an effort to avoid the fall of another bank and a financial crisis”, said Gabriela Siller, director of Economic Analysis at Banco Base.
He mentioned that JPMorgan, Bank of America, Citigroup and Wells Fargo will contribute $5 billion each, while Goldman Sachs and Morgan Stanley will contribute $2.5 billion and PNC, BNY Mellon, Truist, US Bancorp and State Street banks. They will make deposits of $1 billion each.
Siller said the joint backing of First Republic Bank also sent a signal that its impending fall was seen as a significant systemic risk by major US banks.
The expert mentioned that, although the support of private banks for First Republic Bank helped stabilize the markets during Thursday’s session, “new episodes of risk aversion cannot be ruled out.”
