MXN Higher After 2nd Intervention by Central Bank

Mexico’s central bank confirmed on Friday it had sold dollars during the Asian trading session on Friday, its second intervention the day after it did the same during Mexican and U.S. trading hours to fight a slump in the peso.

At 7:45 a.m. Mexico City time, the peso was up 0.53 percent at 21.31 pesos per dollar.

The bank sold dollars in Asian trading hours, according to an official who declined to be named. The bank did not confirm the amount or exact timing of the intervention.

Mexico’s currency has been battered by the election of Donald Trump as U.S. president, who has threatened to scrap a trade deal between Mexico and the United States and block money transfers.

He has also attacked companies that invest in Mexico to produce goods to be sold in the United States.

On Thursday, the central bank sold at least $1 billion in U.S. currency in morning trade, four traders told Reuters, asking not to be identified because they were not authorized to speak publicly.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza