The Dollar at Its Highest Level Since March 2009

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The current exchange rate for the retail trade is 15.55 pesos to $1.00, according to Banamax data; its highest level since March 2009, and 15.20 pesos per $1.00 for wholesale trade; which is also the highest in the last seven years.

The Dollar is getting stronger in the international market because of the uncertainty of the Brazilian and Euro zone economy and the perspective of the labor market in the United States.

The European Central Bank (BCE) published its last monetary policy, and it was decided to maintain interest rates as they currently are. BCE president, Mario Draghi, at a press conference, pointed out the program to buy bonuses will start on March 9, with an amount of sixty thousand Euros a month, and will continue until September 2016, or when inflation goes as far as to 2 % down.

On the other hand, In the United States, the initial applications for unemployment went up by 7, 000, reaching its highest level in nine months last week, and incrementing unemployment application to 320,000, much higher than what the market was expecting.

However, since unemployment applications tend to be unpredictable and are affected by seasonal factors, February agricultural payroll data are still the principal indicators for the exchange rate market, and also for determining the United States’ labor market trend; a Bank basic analysis points out.
An additional factor, that could also be putting some pressure to the parity exchange rate, is the circumstances of the Brazilian economy, and the depreciation of the Real against the dollar, which has reached levels never seen in the last ten years.

Furthermore, the share markets in Mexico and United Stated report earnings. The Dow Jones was going up 0.15% while the Price and Quotes Index were moving with a 0.91% profit.

[readon1 url="index.php?option=com_sobipro&pid=1&sid=703:mar&Itemid=212"]Source:www.VallartaToday.com-by MAR Translation Services[/readon1]



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