Mexican peso closes the week with a decrease of 1.18%

Mexico City. The Mexican peso closed the week with a decrease of 1.18 percent, its worst weekly performance since mid-January. After starting the week at a level of 16.33 dollars – the highest value since November 2015 – the Mexican currency fell and ended at 16.65 units per dollar.

In wholesale operations, the peso registered a drop of 22 cents compared to the previous session and recorded its fourth day in a row of losses, contrary to the performance on Monday, when it registered an exchange rate of 16.33 units per dollar, its best price in almost nine years.

The decline of the Mexican currency occurred amid a strengthening of the US currency, due to growing expectations that the United States Federal Reserve (Fed) will extend its restrictive monetary policy longer than expected.

The session was marked by comments from several members of the US central bank, including Chicago Fed chief Austan Goolsbee, who said the continued high readings of the consumer price index are worrying.

The stock market registers the worst weekly performance since June

For its part, the benchmark index of the Mexican Stock Exchange (S&P/BMV IPC) fell 0.47 percent to 56,565.92 points, thereby accumulating a weekly decline of 2.54 percent, the worst weekly performance since June 2023, in a market that was also attentive to the corporate results season for the first quarter.

The BMV followed the trend of Wall Street, where the main indices fell more than one percent, since the results of the country’s main banks did not impress, culminating a week marked by inflation data, the evolution of expectations about the Fed policy and geopolitical tensions.

The Dow Jones index lost 1.24 percent to 37,983.24 points, the Nasdaq fell 1.62 percent to 16,175.09 points, and the Standard and Poor’s (S&P) 500 lost 1.46 percent to 5,123.41 points.

In Europe, the indices started the day strongly but the momentum did not last long: Paris lost 0.16 percent and Frankfurt 0.13 percent. London, on the other hand, gained 0.91 percent.

“Fear played today” in the stock market, commented Peter Cardillo of Spartan Capital.