Weight falls to its worst level in 14 months amid fears for a new variant of Covid-19

The peso depreciated this Friday morning for the seventh consecutive session dragged by a wave of aversion to risk assets, due to concerns that a new variant of Covid-19 it could slow the recovery of the global economy.

The Mexican currency traded at 21.8230 units per dollar, with a loss of 1.23% compared to the 21.5575 pesos per greenback of the Reuters reference price on Thursday. Previously, in international operations, the Mexican peso it fell back to 22,1510 units, its weakest level since September 30, 2020.

The weight accumulates a loss in the year of almost 10% and outlined its worst week since the end of September 25 of last year.

“Full attention to the new South African variant of Covid-19,” said financial group Monex. “This context takes the scenario of low economic growth, recalling that the Delta variant had a significant global economic impact,” he added.

The new variant of Covid-19 identified in South Africa prompted the European Union, the United Kingdom and India to announce tightening of their border controls as scientists tried to determine whether the mutation is resistant to current vaccines.

The variant has a spike protein that is extremely different from the original coronavirus on which the vaccines are based. Covid-19said the UK Health Safety Agency, raising fears about the likelihood of success of current injections, so far effective against the better-known Delta variant.

In just over two months, the Mexican peso has depreciated 7.89%, from 19.9800 pesos per dollar on September 22 to 21.5564 units in which it closed this Thursday, according to Bank of Mexico (Banxico).

Only in the session this Thursday, the local currency lost 0.51% or 10.92 cents against the dollar, which accumulated a streak of six consecutive days of depreciation against the greenback, a total of 4.22% or 88.76 cents in that period.

(With information from Ariel Méndez)

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