Price of the dollar TODAY March 8, 2024 in Mexico: Peso continues to advance after employment data in the US

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Find out how much the peso is against the dollar when buying and selling in banks in Mexico, such as Banco Azteca, BBVA, Citibanamex, Banorte, among others.

When operations began TODAY, March 8, the dollar was selling for up to 18.10 pesos over the counter in banks. Meanwhile, the interbank exchange rate stands at  16.81 pesos per greenback, with an appreciation of 0.30 percent compared to yesterday’s reference price, increasing its gains from earlier and starting its seventh consecutive day of advances.

The Mexican peso extended its initial gains after an acceleration in employment growth in the United States was known last month, although with an increase in the unemployment rate and moderation in profits .

“The local currency continues with the gains of the week after knowing the inflation figure in Mexico from yesterday, which reinforced the market’s vision about a possible adjustment in the Banxico rate in the next monetary policy meeting ,” they say. analysts from the firm Monex in a note sent to their clients.

Why does the Mexican peso win against the dollar?
According to a report from Banco Base , the peso begins the session with an appreciation of 0.38 percent or 6.5 cents, trading around 16.81 pesos per dollar, with the exchange rate touching a maximum of 16.88 and a minimum of 16.80 pesos per dollar. dollar. 

Due to the above, the peso has gained ground in 9 of the last 10 sessions, accumulating an advance of 1.79 percent or 30.5 cents. 

“The behavior of the exchange rate this morning is due to the dollar’s decline of 0.41 percent according to the weighted index, after the employment report was published in the United States , where the household survey showed a clear deterioration of the labor market,” he says.

According to this survey, in February 184 thousand job positions were destroyed , linking 3 consecutive months with falls and losing a total of 898 thousand jobs in that period, bringing the total number of employees to its worst level since May 2023. 

The deterioration in the labor market raises speculation that the Federal Reserve could cut interest rates before July.

In the survey of establishments, the non-agricultural payroll showed the creation of 275 thousand jobs, above the 198 thousand expected by the market.  

Finally, the average hourly wage grew 0.1 percent, below the market expectation of 0.2 percent and being the lowest growth for a month since February 2022. At an annual rate, wages grew 4.3 percent.

Most appreciated currencies
Chilean peso with 1.38 percent.
Japanese yen with 0.85 percent.
South Korean won with 0.84 percent.
Hungarian forint with 0.64 percent.
Norwegian crown with 0.64 percent.
Swedish krona with 0.57 percent.
Pound sterling with 0.54 percent. 
Most depreciated currencies 

Brazilian real with 0.82 percent.
Russian ruble with 0.36 percent.
Turkish lira with 0.22 percent. 
In the raw materials market, the price of gold continues to rise and reached a new all-time high of $2,171.13 per ounce. 

“The price of gold has gained momentum due to risks to global economic growth, as there are doubts that China can grow sustainably without stimulus,” he said. 
Furthermore, the wars in Ukraine and Palestine continue to be a threat. 

The price of gold is also gaining momentum from the weakening dollar and the possibility that the Fed will begin lowering its interest rate in the summer. 

In terms of relevant news, yesterday the President of the United States, Joe Biden, in his State of the Union speech before Congress, announced that as part of the budget for 2025 he will propose to reduce the deficit by 3 trillion dollars over 10 years and raise corporate taxes from 15 percent to a range between 21 and 28 percent depending on the size of the company.

In Mexico, industrial activity by federal entity as of November 2023 was published . In the accumulated 11 months of 2023, the three states with the highest growth in industrial activity are: Quintana Roo (+122.29 percent), Oaxaca (+17.18 percent) and San Luis Potosí (+16.70 percent).

During the session, the exchange rate is expected to trade between 16.77 and 16.90 pesos per dollar.

Euro and pound price
The euro is sold at the counter for a maximum of 19.85 pesos and is purchased for 18.41 pesos. For its part, the pound sterling is offered at 21.85 pesos and is purchased at 21.64 pesos.

The Bank of Mexico (Banxico) registered an exchange rate of 16.87 pesos per dollar in the previous session.

With information from Reuters.