The Mexican peso loses value against the dollar as bullish bets decline

Between Friday, September 13, and Friday, September 20, the local currency depreciated by 1%, or 19 cents.

The exchange rate closed this Friday’s session at 19.4082 pesos per dollar, reflecting a daily depreciation of 0.64%, or 12 cents, compared to yesterday’s close of 19.2829.

Over the week, from September 13 to September 20, the local currency experienced a 1% decline, or 19 cents, moving from 19.2142 pesos per dollar to 19.4082 per greenback.

Among the most depreciated currencies is the Japanese yen, which fell 1.07% against the dollar after the Bank of Japan kept its benchmark interest rate unchanged at 0.25% last night.

It was followed by the Brazilian real with a 0.82% drop, the Israeli shekel with 0.80%, the South Korean won with 0.58%, the Norwegian krone with 0.42%, and the Swedish krona with 0.35%.

Meanwhile, the most appreciated currencies were the Indonesian rupiah, up 0.58%, the Hungarian forint with 0.18%, the Indian rupee with 0.14%, the Chinese yuan with 0.12%, and the Czech koruna with 0.09%.

The DXY index, which measures the dollar against a basket of six currencies, saw a sharp rise this Friday, gaining 0.14% to 100.462 points compared to yesterday’s close of 100.321. This dollar strength was driven by the reaction of the yen to the Bank of Japan’s monetary policy decision.

Speculative long positions in favor of the peso on the Chicago market fell by 71.48% this week, dropping from 27,000 contracts to 7,700, each worth 500,000 pesos. This has added pressure on the exchange rate, further weakening the currency.