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
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## The Peso Rebounds: an Expert Analysis
**World Today News** sat down with renowned financial analyst, Dr. Elena Ramirez, too discuss the recent strengthening of the Mexican Peso against the US Dollar.
**World Today News:** Dr. Ramirez, the Mexican Peso gained significantly against the dollar today after three consecutive days of losses. What factors contributed to this turnaround?
**Dr.Ramirez:** Several factors played a role. First, we saw a global weakening of the US Dollar. The DXY index, which measures the dollar’s performance against a basket of major currencies, fell today.This decline generally benefits emerging market currencies like the Peso.
**World Today News:** You mentioned emerging markets. Could the mexican Peso’s performance be tied to investor perception of emerging markets in light of global uncertainties?
**Dr. Ramirez:** Absolutely. While the global economic outlook remains uncertain, there seems to be a renewed appetite for riskier assets, including those in emerging markets. Positive developments like the possibility of a ceasefire agreement in the Israel-Hezbollah conflict may be contributing to this sentiment.
**World Today News:** What about the appointment of Scott Bessent as the new US Treasury Secretary? How might this impact the Peso’s future performance?
**Dr. Ramirez:** The markets reacted with relative calm to the appointment. Secretary Bessent is known for being market-friendly, and investors seem to be taking his appointment as a positive sign. Though, it’s still too early to say definitively how his policies will impact the Peso in the long term.
**World today news:** We’ve also seen Mexican debt interest rates drop today. Is this connected to the Peso’s strengthening?
**Dr. Ramirez:** Yes, there’s often a correlation between currency movements and debt interest rates. When a currency strengthens, it can make borrowing costs more attractive for the sovereign issuer. This, in turn, can lead to lower interest rates.
**World Today News:** What can we expect from the Peso in the coming weeks?
**Dr. Ramirez:** Predicting currency movements is always challenging. However, barring any major unforeseen events, I expect the Peso to remain relatively stable in the short term. The global economic habitat remains uncertain, but the peso’s recent resilience suggests it is well-placed to whether further volatility.
**World Today news:** Thank you for sharing your insights,Dr. ramirez.
**Dr. Ramirez:** It was my pleasure.
**Note:** This interview is meant to provide context and analysis based on the information provided in the original text.
