The Mexican peso appreciates against American dollar this Tuesday morning. The local currency is trading below 20 units driven by news about a breakthrough in the peace negotiations between Russia and Ukraine.
The exchange rate stands at 19.9724 units per greenback against the official closing of 20.1035 units in the registry of the Bank of Mexico (Banxico). That means an advance of 13.11 cents, equivalent to 0.65 percent.
The cross trades in an open range between a high of 20.1146 units and a low of 19.9138 units. The Dollar Index (DXY), which measures the greenback against a basket of six currencies, fell -0.86% to 98.24 units.
The dollar weakens in the markets, due to an increase in appetite for risk assets, after a meeting between Russian and Ukrainian negotiators that could reduce Russian military activity near kyiv and Chernigov.
The Russian government reduced its military activity around those cities. Ukraine has proposed adopting a neutral state in exchange for security guarantees, so it should not join military alliances or host military bases.
“These delegations met in Istanbul in a new round of negotiations to try to agree on a ceasefire. The continuation of the dialogue leaves room for the hope of a pact,” the local CI Banco explained in a report.
According to analysts from the local firm Banco Base, the appreciation of the peso below the level of 20 units per greenback opens the door for it to seek a course towards levels between 19.80 and 19.85 units.
