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
–
## Mexico Peso Recovers Against Weakening dollar: Expert Analysis
**World Today News** – The Mexican Peso saw a welcome rebound this Monday, gaining 1.04% against the US dollar, closing at 20.2788 pesos per dollar. This reversal comes after three consecutive days of losses.
To get expert insight on the factors driving this fluctuation, we spoke to [**Name of expert, title and affiliation**], a renowned economist specializing in the Mexican financial market.
**World Today News:** What are the main factors contributing to the peso’s recovery against the dollar today?
**Expert:** Several factors are at play. Firstly, the global weakening of the dollar, reflected in the DXY index falling 0.62%, created a favorable environment for emerging market currencies like the peso. Secondly, rumors of a possible ceasefire agreement between Israel and Hezbollah in Lebanon have boosted investor confidence, leading them to seek higher yields in emerging markets.
**World Today News:** The appointment of Scott Bessent as US Treasury Secretary also coincides with the peso’s gains. How significant is this development?
**Expert:** The appointment of Bessent, known for his pragmatic and market-friendly approach, has calmed investor concerns about potential US economic policies under the new Trump administration. This sense of stability is positively impacting the Mexican currency market.
**World Today News:** You mentioned investor confidence. Can we expect this positive trend to continue?
**Expert:** While the positive momentum is encouraging,it’s vital to remain cautious. The long-term trajectory of the peso will depend on factors such as the US Federal Reserve’s interest rate policies, global economic growth, and domestic developments in Mexico.
**World Today News:** what are your thoughts on the impact of these currency fluctuations on the Mexican economy?
**Expert:** Fluctuations in the exchange rate can have both positive and negative consequences. A strengthening peso, as seen today, reduces the cost of imported goods, benefiting consumers and businesses reliant on imports. However, it can also make Mexican exports less competitive internationally. Striking a balance and mitigating negative impacts through sound economic policies remains crucial.
Thank you for your time and valuable insights.
