Peso has a third weekly setback and accumulates a loss of 7.34%

Mexico City. The peso registered its third consecutive week of losses, this time due to the strengthening of the dollar after a mixed labor report in the United States, while domestically the progress in Congress of the process for judicial reform had an impact.

In wholesale operations, the Mexican currency fell 6 cents (0.33 percent), to 19.99 units per dollar, according to the closing price of the Bank of Mexico. The peso mitigated the losses, since in transactions during the session it broke the barrier of 20 units per dollar for the second consecutive day.

The peso has lost 29 cents (1.50 percent) this week, and has fallen 1.36 units in the last three weeks, or 7.34 percent.

The peso was affected by local political volatility and the impact of economic data in the United States on the Federal Reserve’s narrativesaid Monex Financial Group.

At the local level, it is expected that after having been approved in the Chamber of Deputies, the senators will begin the legislative process on Sunday to endorse first in committees and then in the Plenary the constitutional changes to the Judicial Branch, which among other things propose the election by popular vote of judges, magistrates, as well as the ministers of the Supreme Court, an aspect that is not well received by the business sector or by Mexico’s trading partners in the T-MEC, the United States and Canada, who fear a loss of autonomy of the Judicial Branch and the placement of judges by criminal groups, among other risks.

The Mexican currency lost its nickname superweightsince the end of May, before the elections of June 2, and to date it has lost three pesos, equivalent to 17.85 percent of its value, amid persistent volatility.

Until three weeks ago, the factors that weighed most heavily on the exchange rate were considered to be external, such as the slowdown in job creation in the United States and fears of a recession in that country, as well as the appreciation of the Japanese yen, among others.

For its part, the benchmark index of the Mexican Stock Exchange (BMV) fell 1.12 percent to 51,083.44 points, with a cumulative weekly decline of 1.7 percent, also in its third week of losses.

The BMV followed the trend of its counterpart on Wall Street, where the main indexes fell, weighed down by an employment report that showed a continued slowdown in the labor market in the United States, but left traders uncertain about the level of a foreseeable interest rate cut expected this month by the Federal Reserve.

Oil prices post losses

Oil prices fell more than 2 percent to end with a sharp weekly loss after U.S. employment rose less than expected in August, as demand concerns outweighed a decision by OPEC+ producers to delay increasing supply.

Brent crude fell $1.63 to $71.06, while American WTI crude fell $1.48 to $67.67. Over the week, Brent crude lost nearly 9 percent and WTI crude nearly 8 percent. The Mexican export blend lost $1.38 to $63.25 per barrel. Over the week, it fell $6.5, or 9.31 percent, and is at its lowest level since June 27, 2023, when it closed at $62.63 per barrel.