Monday , October 18 2021

Dollar step by step of $ 690 after Xi Jinping's speech that disappointed the market



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The dollar ended the day with an advance of $ 2.4 pesos and stood at $ 689.1, compared to $ 686.7 that reached on Monday. The depreciation of the national currency is explained by the strong drops of copper after the celebration of the 40th anniversary of China's economic openness.

Copper prices reached a minimum value of more than one month due to fears that weak global growth would reduce demand, and added that news reports that a smelter in India could restart activities and increase supply.

The sharp losses shown by the country's main export are explained by the disappointing speech of China's President Xi Jinping in the celebration of the 40-year economic opening of the Asian country. The president did not offer new commitments to open or stimulate the second largest economy in the world, amid the weak economic data of the country, which increased the nervousness among investors.

In this way, the national currency ignores the weakness of the dollar in international markets. The Dollar Index – which measures the performance of the currency against a basket of six currencies in the world – goes back to 0.20% and goes on to mark its second day down.

"Keeping the current situation, the next level to overcome is $ 691.73. If it breaks firmly that level of prices, it is likely that the pair will approach the psychological barrier of $ 700, "said Francisco Lotano, analyst at Alpari Research & Analysis.

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