The US dollar traded down on the last business session of the week, ahead of a long weekend. It ended nine cents lower at 14.96 pesos, its lowest mark in two weeks. In the informal market, the so called “blue” dollar closed slightly lower at 14.90 pesos.
The US currency yesterday gained 18 cents despite further cuts in Central Bank interest rates.
A gain of 18 cents meant that the peso closed at 15.05 per greenback in the retail market, while the wholesale dollar market also saw a 10-cent gain for the country’s currency, which ended at 14.72 per dollar.
The peso had lost 10 percent of its value in the week after the Brexit vote, reaching a high mark of 15.43 per dollar in the retail market, as exporters withheld their sales waiting for it to reach its bottom in order to get better value for their produce.
But that trend seems to be over.
“There is now supply for dollars and that has pushed its value down in the country. Foreign currency inflows are a dominant force again and that is forcing prices down, even below the expectation of those who thought 15 pesos per dollar would be the new floor in this market,” Gustavo Quintana from PR Corredores de Cambio said yesterday.
The dollar futures market is reacting in a similar way, predicting a 15.03 dollar by the end of the month, 15.41 for August and 16.50 for December.