The peso regains strength after four negative sessions

Mexico City. The peso broke a negative streak of four consecutive sessions to appreciate up to 19.28 units per dollar spotafter the Bank of Japan (BoJ) supported advances in the foreign exchange markets by suggesting a pause in the increase of its interest rates to avoid further instability.

The Mexican currency recorded a gain of 1.23 percent yesterday, equivalent to 23.93 cents, to close in the wholesale market at 19.2864 pesos per dollar. spotthus recovering a third of the losses of the previous four days.

According to data from the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 19.3500 units and a minimum of 19.1240. While waiting for the monetary policy decision of the BdeM this Thursday, the appreciation of the national currency occurred despite the fact that the dollar maintained its strength on a global scale.

The DXY index, which measures the dollar’s performance against a basket of six international currencies, appreciated 0.21 percent, to 102.970 units.

Bank of Japan Deputy Governor Sinichi Uchida has issued a message to investors announcing that in the short term they will not raise interest rates due to market instability and that they will continue with monetary easing.

As the Asian country’s monetary policy is one of the main factors behind the recent declines in financial assets, these comments helped to reduce losses. The financial market is trying to gradually recover in a volatile environment. Japan has become a major source of concern for many global investors.highlighted Jorge Gordillo, director of economic analysis at CIBanco.

The BoJ’s decision to raise rates last week forced traders to abandon strategies based on the view that the Japanese currency will remain weak and interest rates will not rise quickly. The yen’s rally also derailed one of the most profitable trading strategies this year, the carry tradewhich involves borrowing in Japanese currency to invest in other global assets.

In this regard, the Bank of Japan attempted to calm the market by suggesting a pause in the rise of interest rates.

Setback on the NYSE

Wall Street, meanwhile, reversed morning gains, supported by Japan, and U.S. stocks closed lower yesterday amid a drop in technology stocks, with investor jitters fueled by weak demand at a 10-year Treasury bond auction.

The Dow Jones closed down 0.6 percent to 38,763.45 points, while the selective S&P 500 lost 0.77 percent to 5,199.50 points, and the technological Nasdaq lost 1.05 percent to 16,195.81 points.

Following a positive opening, major technology stocks closed in the red, including Nvidia, down 5 percent; Meta, down 1.05 percent; and Tesla, down 4.4 percent, which saw the momentum they gained yesterday limited.

The worst performer among US technology companies on Wednesday was server supplier Super Micro Computer, which fell more than 20 percent after its financial results fell short of analysts’ estimates.

Investors have reportedly lost billions of dollars shorting the stock market due to volatile stocks. A bet that markets would remain calm has cost retail traders, hedge funds and pension funds billions after a sharp plunge in global stocks, highlighting the risks of shorting the stock market.

For its part, the Mexican Stock Exchange (BMV) gained 0.54 percent, to 52,680.90 points, supported by Banorte and Grupo México with a gain of 2.42 and 1.95 percent, respectively.

Oil prices rose more than 2 percent on Wednesday, rebounding from multi-month lows after data showed a bigger-than-expected drop in U.S. crude inventories, though concerns persist about weak demand in China.

Brent crude futures gained 2.42 percent to $78.33 a barrel, while West Texas Intermediate crude futures gained 2.77 percent to $75.23. The Mexican mix closed at $68.10.