Peso wins after announcement of stimuli from the European Central Bank – Economy

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Mexico City. The peso against the dollar began the session on Thursday with a gain of 9 cents, driven mainly by decisions made at the European Central Bank (ECB) in monetary policy.

The exchange rate was at the beginning of the day at 19.46 units, appreciation of 0.46 percent or 9 cents against yesterday's close, when it ended at 19.55 pesos per dollar.

This is the biggest advance for the national currency against the greenback, the main currency to be traded in the foreign exchange market, since August 12, when it reached a level of 19.38 units.

Europe, this morning's factor

According to Gabriela Siller, chief economist at Banco Base, the appreciation of the Mexican currency is because the ECB announced a series of monetary stimuli to help the region's economy.

Mario Draghi, president of the European bank, said the deposit rate will be cut by 10 basis points.

According to the analyst, this announcement has caused that the majority of currencies of emerging economies, such as the Mexican one, win against the dollar.

Mhuge nervousness for China and the US

Another factor that has supported the appreciation of the peso is greater optimism for investors in foreign exchange for emerging currencies in the face of lower trade tensions between China and the United States.

Yesterday China announced the suspension of the application of tariffs on 16 US products, showing interest again in the purchase of agricultural products from the United States.

For his part, US President Donald Trump announced that his country will delay the increase of 25 percent to 30 percent in tariffs applied to $ 250 billion from October 1 to 15.



Source link
https://www.jornada.com.mx/ultimas/2019/09/12/peso-gana-tras-anuncio-de-estimulos-del-banco-central-europeo-5935.html

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