The Mexican peso rises against the dollar and reaches new lows…

Mexico City – The Mexican Peso continues to rise against the dollar. Mexican currency Deep gains on the morning of May 5th Exceeding analysts’ estimates at the beginning of the week.

he Mexican pesos It reached $17.74665 per dollar (Mexico City 9:48 a.m.), its best level since September 2017. Later, it pared its gains, but remained in positive territory with a 0.14% advance to trade at $17.7705 per dollar.

After hitting a new six-year low, the currency has fluctuated between $17.79 and Mexican pesos 17.77 per unit, according to Bloomberg data.

The Mexican currency’s advance was due to the weakness of the dollar index at 0.68%, which was located at 101.273 points, according to Bloomberg data.

There are several elements that favor the Mexican Peso this course. On the other hand, data on the US labor market was delivered. In April, the US economy added 253,000 non-farm jobs. While analyst estimates were put at 185,000 jobs. In addition, the unemployment rate was 3.4% and the estimated 3.6%.

“The market is interpreting that the labor market remains strong and that a soft landing scenario is still possible,” said James Salazar, director of economic and financial analysis at CiBanco.

The strategist said that operators are moving away from anticipating a potential recession, or failing that, there are those who consider the recession to have entered a recessive period “This data shows that it has not.”

At the beginning of the week, analysts said at Sipanco And Banorte They predicted that the next target for the coin was $17.90 per dollar.

AndThe market shows an increase due to risky assets. The above after jitters about banking in the US resurfaced due to PacWest and Western Alliance, which posted declines of more than 70% on Thursday.

“We see important rebounds in these companies; he helps everyone and he prefers the Mexican peso,” Salazar said.

Other items that support currency are added, such as The interest rate difference between Mexico and the United StatesDespite the Fed’s hike this week, according to Signum Research economist Alan James.

“Mexico has replaced China as the main supplier of goods to the United States, which is a direct impact on nearby transportation and naturally affects the behavior of the peso,” said the strategist.

in March , Actinver analysis region estimated that in the short termthe currency is expected to record levels of $17.50 per dollar.

Towards the end of the second quarter of the year, Banorte analysts maintain the most optimistic outlook for the Mexican peso, as it is expected to close at $17.62 per dollar; While the downward trend is from London-based Nomura International Bank, which estimates that the currency will reach $19.70 per dollar, according to Bloomberg figures.