Mexico City. On the eve of the election in the United States, volatility took over the financial markets this Monday. The exchange rate in Mexico, which began the day at 20.05 pesos per dollar, ended at 20.15 per spot dollar.
Amid the global weakness of the dollar, emerging currencies, mainly those of Latin America, were revitalized this Monday, after a favorable poll for Kamala Harris in the key state of Iowa.
Operations were cautious in view of this Tuesday’s elections in the United States and the decision of the Federal Reserve (Fed) next Thursday.
At the close of the interbank market, the Mexican currency showed a daily appreciation of 0.62 percent, equivalent to a gain of 12.56 cents, to 20.1512 pesos per dollar.
According to data from the Bank of Mexico, the exchange rate operated between a maximum of 20.1680 units and a minimum of 19.9640 units.
Mexican peso speculators in Chicago will continue to bet in favor of the national currency despite the volatility in the market due to the elections in the United States and despite the projections about the next move of the United States Federal Reserve.
The latest data reported, which covers from October 25 to November 1, bets on the Mexican peso on the Chicago Mercantil Exchange (CME) totaled 35 thousand contracts, after two weeks of declines. Despite the nervousness over the result of the elections on November 5 in the United States, investors continue to be attracted by the interest rate differential that Mexico maintains against the United States, which currently amounts to 5.5 percentage points.
However, investors have on their radar the possibility that the winner of the White House will not be known until days after the vote, so the markets would show greater volatility between now and the electoral situation is clarified.
Oil on the rise
Oil prices rose again this Monday, after the OPEC+ alliance postponed an increase in its production, and renewed threats from Iran against Israel.
A barrel of North Sea Brent for delivery in January gained 2.71 percent, to $75.08. Meanwhile, West Texas Intermediate (WTI) for December added 2.85 percent, to $71.47. This is the fourth consecutive increase for WTI.
Wall Street operated lower and although it reduced its falls, it closed lower, due to profit-taking before a presidential election that is expected to be very close in the United States, and a few days before a new Fed meeting.
The Nasdaq fell 0.31 percent, to 18,182.93 points; while the Dow Jones lost 0.61 percent, to 41,794.60 units, and the S&P 500 fell 0.28 percent, to 5,712.69 points.
While the Mexican Stock Exchange (BMV) gained 0.51 percent, equivalent to 265 points, to close at 50,882.54 points this Monday.
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