Mexico City. The Mexican peso returned to gains this Monday against a dollar that weakened globally. After three consecutive downward closings, the Mexican currency appreciated 1.04 percent, equivalent to 21.31 cents against the US currency, to 20.2788 pesos per spot dollar.
The Mexican currency received with stability the appointment of Scott Bessent as Secretary of the United States Treasury under the new administration of Donald Trump.
According to data from the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 20.4200 units and a minimum of 20.1900 units. Rumors that the ongoing conflict between Israel and Hezbollah in Lebanon could have a ceasefire agreement on the table have encouraged investors.
While the dollar deflated, as its DXY index, which measures the behavior of the US currency against a basket of six international currencies, fell 0.62 percent, to 106,842 units. And the repercussions of the appointment of the new US Secretary of State have a full impact on the fixed income and currency markets.
Debt interest rates drop significantly in anticipation of greater fiscal and debt containment thanks to the more orthodox profile of Scott Bessent (George Soros’ extrader and fund manager). Investors regain confidence in the US debt, so the purchases reduce the interest rate on the 10-year bond to around 4.227 percent, after last week it reached levels close to 4.44 percent.
The Dow Jones Industrial Average surged higher on Monday, starting the new trading week with a new all-time high just below the 44,800 zone, gaining 0.99 percent to 44,736.57 points. Meanwhile, the S&P 500 and the Nasdaq gained 0.30 and 0.27 percent, respectively.
The Mexican Stock Exchange (BMV), for its part, fell 0.44 percent, to 50,207.18 points. The main Mexican stock index fails to raise its head and remains at the lowest levels of a year ago.
Affected by the drop in the price of Televisa shares (4.88 percent); Peñoles (3.98 percent); La Comer (4.82 percent).
Texas intermediate oil (WTI) futures contracts, for delivery in January, the new reference month, closed this Monday with a drop of 3.2 percent, to $68.94 a barrel due to a possible truce between Israel and Hezbollah in Lebanon.
The US benchmark crude oil thus lost part of last week’s appreciation of 6.4 percent, attributed to the escalation of the war between Russia and Ukraine and its consequences on energy supplies in Europe.
For its part, the barrel of North Sea crude oil, the benchmark in Europe, Brent, for delivery in January, fell 2.87 percent this Monday in the London futures market, to $73.01 at the close due to the possibility of an “imminent” ceasefire agreement in Lebanon by Israel.
Oil prices reacted downward to the news that Israeli Prime Minister Benjamin Netanyahu has accepted “in principle” the United States proposal for a ceasefire in Lebanon, which would mean the total withdrawal of its troops in the neighboring country in 60 days.
For its part, gold lost 3.17 percent, to $2,650.50 per troy ounce, and moved away from its maximum levels. The same thing happened to bitcoin, which fell 4.52 percent, to 93,571.6 dollars.
#Peace #talks #encourage #financial #markets
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## Peso Rebounds as Dollar Weakens, bessent Appointment Stabilizes Markets
**World-Today-News.com Exclusive Interview**
**Mexico City:** The Mexican peso experienced a notable surge this monday, regaining ground against a weakening US dollar. After three days of consecutive losses, the peso appreciated by 1.04%, translating to a gain of 21.31 cents, reaching 20.2788 pesos per dollar.To understand the factors driving this market movement, we spoke with **Dr. Alejandro Garza**, a renowned economist and Professor of International Finance at the National Autonomous University of Mexico (UNAM).
**World-Today-News:** dr. Garza, what are the key reasons behind the peso’s rebound today?
**Dr. Garza:** Several factors are at play. Firstly, the global dollar weakened today, impacting many currencies, including the peso. This weakness is reflected in the DXY index, which fell by 0.62%. Secondly,news of potential ceasefire negotiations between Israel and Hezbollah in Lebanon has instilled a sense of optimism in the markets,generally leading to risk-on behavior and benefiting currencies like the peso.
**World-Today-News:** How has the appointment of Scott Bessent as US treasury Secretary under the new Trump administration impacted the Mexican market?
**Dr. Garza:** The appointment has initially been received with stability by the Mexican market, including the peso.
Mr. Bessent is perceived as a pragmatic and experienced figure in financial markets, which has helped to soothe investor concerns about potential drastic policy changes. However,it is still early days,and we need to see more concrete policy announcements before fully understanding the long-term impact on the Mexican economy.
**World-Today-News:** You mentioned that the dollar weakened globally. Can you elaborate on this trend and its implications?
**Dr. Garza:** The dollar’s recent weakness is a result of several factors, including expectations of a slower pace of US interest rate hikes, relative economic strength in other regions, and concerns about the potential impact of US trade policies.This weakening dollar can benefit emerging markets like Mexico by making exports more competitive and attracting foreign investment.
**World-Today-News:** With the peso’s volatility in recent months, what advice would you give to foreign investors considering the Mexican market?
**Dr. Garza:** The Mexican market presents both opportunities and challenges for foreign investors.
While the peso’s volatility can be a concern, it also creates potential for attractive returns. Investors should carefully analyze their risk appetite, diversify their portfolio, and closely monitor political and economic developments.
**World-Today-News:** Thank you for your insights, Dr. Garza.
This interview offers valuable context to the recent peso rebound, highlighting the interplay of global factors, domestic developments, and investor sentiment.
As the global economic landscape evolves, World-Today-News will continue to provide incisive analysis and expert commentary on market trends and their implications for investors worldwide.
