Open the peso with depreciation; operates at 16.66 per dollar

The possibility of avoiding an escalation of the conflict between Israel and Iran emerges in the financial markets, as demonstrated by the prices of oil, one of the most sensitive assets to this conflict, and the moderate movements in the exchange and stock markets. .

At the opening of American markets, the Mexican peso shows a depreciation of 0.27 percent, to operate at around 16.6641 units per dollar.

Meanwhile, the dollar index, the DXY, which measures the behavior of the US currency against a basket of six international currencies, appreciated 0.06 percent, to 105,895 units, amid the growing geopolitical tension between Iran and Israel.

The more defensive profile of the US currency compared to other currencies, together with the less favorable scenario for rate cuts faced by the Federal Reserve (Fed), strengthen the dollar.

Analysts highlight the limited impact of Iran’s attack, which fired more than 300 drones and missiles at Israel on Saturday night, as well as the United States’ decision not to support any type of Israeli offensive on Iranian territory. These factors mitigate the warnings of a large-scale war between Israel and Iran.

“We will have to see how the situation evolves in the coming days and weeks, to know if Iran’s response has been the climax of the escalation, or if, on the contrary, Israel increases the atmosphere of war with an attack greater than the one carried out on the Iranian embassy in Damascus,” CIBanco analysts explained.

The increases in oil prices in recent weeks give a respite at the start of the week, marked by geopolitical events. The barrel of Brent even hits intraday lows below $90, with analysts adjusting the geopolitical risk premium included in its price. The European reference registers a fall of 1.24 percent, to operate at 89.30 dollars. The price of a West Texas barrel, the benchmark in the United States, cools to around $84, with a drop of 1.26 percent.

While in the United States, retail sales in March exceeded expectations with a monthly growth of 0.7 percent; In addition, February’s increase was revised upward to 0.9 percent, Wall Street opens higher.

While U.S. monetary policy easing is now projected to begin in September and the Fed is likely to cut less than the three times it had anticipated in its March dot plot, investors expect U.S. financial reports companies at the end of the first quarter bring positive figures that boost the stock markets.

The strength of the dollar plays against assets denominated in the US currency such as gold. The precious metal, after having reached maximum levels of $2,400, fell 1.27 percent this Monday, to $2,346 per troy ounce.