Mexico City. After trying to break the psychological barrier of 20 pesos per dollar this Thursday, the Mexican currency ended the streak of three sessions of losses against the US currency, registering a daily appreciation of 0.30 percent, to close at 19.8807 pesos per spot dollar.
The United States elections and the possibility that Donald Trump will be victorious on November 5 kept the exchange rate highly volatile, since during the day it operated between a maximum of 19.9650 units and a minimum of 19.8400 units in the interbank market.
Before the opening of American markets, the Mexican peso reached 20.03 units per dollar, levels not seen since September, according to data from the Bank of Mexico (BdeM).
The above, despite the fact that the dollar strengthened its appreciation against the main international crosses, gaining 0.18 percent, to 103,590 units, according to the DXY index.
Strong retail sales in the United States boosted the Dow Jones, the 30-stock index in the United States, to a new high.
The Dow Jones advanced 0.37 percent, to 43,239.05 units, a second consecutive high, while on the other hand, the S&P 500 and the Nasdaq closed flat, erasing their gains for the session.
Consumption is resilient in the United States, Mexico’s main trading partner, at least that is what September retail sales suggest, while manufacturing data was weak. Thus, interest rates will fall, but not with the urgency of rescuing an economy in trouble. The Federal Reserve (Fed) is expected to cut rates by 0.25 percentage points in November.
Treasury bonds suffered a sharp sell-off due to this upward revision in rate expectations, cooling enthusiasm for the stock market in general, which was evident in the S&P 500, but the profitability of 10-year bonds was maintained. United States at 4,090 percent.
The Mexican Stock Exchange, for its part, closed with a marginal drop of 0.04 percent, to 52,463.66 points.
In addition, the European Central Bank (ECB) cut interest rates this Thursday for the third time this year, indicating that inflation in the euro zone is increasingly controlled and that the economic outlook has deteriorated.
This decision is expected to boost oil prices as it makes borrowing cheaper and boosts demand.
Oil prices rose on Thursday, recovering from their two-week lows, after data showed a drop in crude and fuel inventories in the United States.
Brent crude futures gained 0.31 percent to $74.45 a barrel, while West Texas Intermediate futures fell 0.4 percent to $70.67 a barrel.
Investors are also awaiting more details on China’s plans, announced on Oct. 12, to revive its battered economy, including efforts to shore up the sagging property market.
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