Peso extends losses; trades at 18.38 per dollar

Mexico City. The Mexican peso extended its losses against the dollar on Wednesday. At the opening of the American markets, the Mexican currency depreciated 1.33 percent to trade at around 18.3875 units per dollar, levels not seen for a month.

“Today, the peso is affected by the volatility observed at the close of the previous session, after considering a possible acceleration of the approval of “plan C” in August. At the same time, comments on possible tariff increases by Donald Trump have affected the development of infrastructure projects in our country,” said the economic analysis area of ​​Monex.

During the early morning, the exchange rate reached levels of 18.18 pesos per dollar, slightly above its closing in the wholesale market at 18.1690 per spot dollar, but now exceeds 18.38 units.

In addition, Inegi revealed this morning that general inflation in Mexico accelerated to 5.61 percent annually, the highest since May 2023, and moving further away from the Bank of Mexico’s price stability objective (3.0 percent +/- one percentage point), and putting obstacles in the way of the interest rate decline, currently at 11 percent.

The dollar is losing momentum internationally, as its weighted index, which measures its performance against a basket of six international currencies, depreciated this morning by 0.24 percent to 103.927 units.

Negative boards

Wall Street opened with negative news. In the United States, financial reports from two of the “magnificent seven” were presented yesterday. Alphabet earned 23.6 billion dollars, above what analysts had expected. However, investors have penalized YouTube’s earnings, which were below market estimates. Alphabet shares responded with a fall of 5 percent.

Tesla, meanwhile, saw its profits fall by 45 percent in the second quarter to $1.478 billion. The group’s sales reached $25.5 billion, but its shares fell by nearly 10 percent.

The Nasdaq lost 1.94 percent, while the S&P 500 lost 1.36 percent and the Dow Jones fell 0.86 percent.

Markets are still waiting for US PMI figures after seeing weak activity data in Europe. Ahead of the US elections, Kamala Harris remains ahead in the Democratic Party polls.

For its part, the Mexican Stock Exchange (BMV) fell 0.05 percent to 53,681.61 points.

After four days of declines, oil prices are on the rise. Brent rose 0.43 percent this morning to $81.36, while WTI rose 0.60 percent to $77.44.