This Monday, July 19, dollar started operations in Mexico with an average price of 19.82 pesos. On purchase it is listed at 19.60, while on sale it is at 20.05.

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The dollar settled near its highest levels in months on Monday as the spread of the Delta coronavirus variant made investors nervous about the global recovery and sent money to safety.

The US dollar index held at 92.729, not far from last week’s three-month high of 92.832. The euro sold at $ 1.1801, just slightly above last week’s three-month low of $ 1.1772.

The dollar rose on Friday to record its biggest weekly gain in a month, bolstered by positive retail sales data that bolstered expectations that economic growth accelerated in the second quarter.

The dollar index, which measures the performance of the greenback against a basket of currencies, rose 0.11% to 92.675, up 0.6% for the week.

US retail sales unexpectedly increased in June as demand for goods remained strong, even though spending is shifting to services.

A survey that showed US consumer confidence fell sharply in early July to a five-month low on inflation concerns did not affect the strength of the dollar.

Strong US data and a shift in interest rate expectations after the Federal Reserve suggested earlier-than-expected hikes in June in 2023 helped propel the dollar in recent weeks and made investors nervous about rates. short bets.

The dollar’s advance came despite Fed Chairman Jerome Powell reiterating Thursday that rising inflation is likely to be transitory and that the US central bank will continue to support the economy.

“The data was consistent with substantial progress in the economy and solidifies expectations for very strong second quarter growth of around 10%,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

Closing of the Mexican market

The Mexican peso gained on Friday at the end of a week marked by an increase in COVID-19 cases in various regions of the world, and expectations about the next steps in the monetary policy of the United States Federal Reserve.

The stock market, meanwhile, lost after scoring a solid advance in the previous session, with investors’ attention focused on the quarterly reporting season both on Wall Street and in Mexico.

The local currency, which posted a marginal loss for the week, was trading at 19.8990 per dollar near the end of the session, up 0.18% from 19.9350 in the Reuters reference price on Thursday.

Meanwhile, the benchmark S & P / BMV IPC stock index fell 0.25% to 50,148.13 points, with a volume of 102.5 million securities traded. The market advanced 1.7% on Thursday, its biggest daily jump since the first week of June. In the week it gained 0.76%.

The president of the Fed, Jerome Powell, has said that the inflationary pressures are of a transitory nature and that the US economy remains “very far” from where the entity wants to see it before reducing its monetary support.

However, US Treasury Secretary Janet Yellen mentioned that she expected several more months of high inflation readings.

Meanwhile, COVID-19 infection rates have resurfaced in several countries, especially in Africa and parts of Asia, as the Delta variant continues to consolidate. Mexico has been reporting more than 10,000 new infections daily for three days in a row.

“Investors are assessing the outlook for the global economy amid continued strong monetary support and fears of further restrictions from COVID-19,” local firm CI Banco said in a report.

In the debt market, the 10-year bond yield rose four basis points to 6.94%, as did the 20-year rate, which closed at 7.45%.

With information from Reuters