Peso falls; it is trading at 19.33 per dollar

Mexico City. The Mexican peso started Friday with a decline, in what is the third consecutive session of depreciation, due to a global rebound of the dollar after the Bank of Japan kept interest rates unchanged and expressed optimism about the direction of the economy.

The domestic currency is trading at 19.33 per dollar, with a depreciation of 0.20 percent against the reference price of Reuters Thursday, and is on track to end the week with a cumulative loss of 0.80 percent.

For now, all eyes were on comments from Philadelphia Fed chief Patrick Harker at a university conference in New Orleans later in the day after the U.S. central bank cut rates by half a percentage point on Wednesday.

The Mexican Stock Exchange (BMV) fell, interrupting a six-session winning streak, dragged down by an adjustment of positions in overseas markets after an aggressive rate cut by the Federal Reserve boosted investor sentiment.

The leading S&P/BMV IPC index .MXX fell 0.53 percent to 52,635.23 points in early trading on a day that was expected to be volatile due to the expiration of futures and options contracts on Wall Street.

It had accumulated a return of 1.2 percent this week.

Gold breaks the 2% barrier mil $600 per ounce

Gold broke above $2,600 for the first time, extending a rally driven by bets on further U.S. interest rate cuts and rising tensions in the Middle East.

Spot gold XAU= was up 0.7 percent at $2,605.50 an ounce by 1405 GMT, while U.S. futures GCcv1 were up 0.6 percent at $2,630.30. Silver XAG= was up 0.5 percent at $30.93.

Bullion’s rally was boosted after the Federal Reserve kicked off an aggressive easing cycle on Wednesday with a half-percentage point cut, boosting the appeal of non-interest-bearing gold.

Safe-haven asset prices have risen 26 percent in 2024, the biggest annual gain since 2010, as investors also sought to hedge against uncertainties caused by conflicts in the Middle East and elsewhere.

The record rally could be on the verge of a correction, analysts say.

“Clearly, there is still some buying activity associated with the Federal Reserve’s decision to start its easing cycle with a big cut,” said Daniel Ghali, commodity strategist at TD Securities.