Mexico City. The Mexican currency tried to move away from the psychological level of 20 pesos per dollar. The Mexican peso registered a daily appreciation of 0.14 percent, equivalent to 2.8 cents, to close at 19.9478 pesos per spot dollar.
The gain of the national currency slowed, since before the opening its price was around 19.7686 units per dollar. The above, given the break that the dollar took worldwide before the session started. However, the dollar index, which measures the behavior of the currency against a basket of six international currencies, turned around and operated with a marginal appreciation of 0.07 percent, at 103,907 units. The US currency remained relatively stable, amid the Federal Reserve’s interest rate outlook.
Thus, the national currency could not sustain the advantage it had over the dollar and once again approached 20 per dollar.
According to data from the Bank of Mexico (BdeM), the exchange rate operated this Tuesday’s session between a maximum of 19.9600 units and a minimum of 19.8560 units in the wholesale market.
The exchange rate in Mexico presents significant volatility, since there are many factors behind this variation, such as an electrocardiogram, among which the United States elections and their results stand out; the statements of those contending for the White House; the monetary policy of the Federal Reserve; the conflicts in the Middle East and national events regarding reforms (judicial and autonomous organizations), mainly, according to what analysts have considered.
President Claudia Sheinbaum explained in her morning conference that the depreciation of the Mexican peso is due to the increase in interest rates in Japan (which makes the carry tradegoing into debt in currency such as the yen to invest in more profitable markets such as Mexican assets) and the statements of a candidate in the United States about trade retaliation with Mexico.
Sheinbaum guaranteed that, whoever wins the United States elections on November 5 (Kamala Harris or Donald Trump), the Treaty between Mexico, the United States and Canada (T-MEC) is not at risk.
Stocks and oil
Brent crude futures for December rose 2.36 percent to $76.04 per barrel, while West Texas Intermediate (WTI) futures for November delivery, which expire after Tuesday’s settlement, rose 2.17 percent to $72.09. the barrel.
Traders downplayed hopes for a Middle East ceasefire and focused on tightening the balance between global supply and demand.
For its part, Wall Street closed this Tuesday in mixed territory and its main indicator, the Dow Jones, fell 0.02 percent, to 42,924 points, as prudence prevailed among investors. The S&P fell 0.05 percent, to 5,851 units, while the Nasdaq index rose 0.18 percent, to 18,573 points.
According to analysts, the market believes that the Federal Reserve will be less aggressive in the next interest rate cuts after the change in the cycle in September, when it dictated a half-point cut.
For its part, the Mexican Stock Exchange (BMV) fell 0.84 percent, equivalent to 446.13 points, to close at 52,368.69 points.
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