Mexico City. The Mexican peso depreciated this Friday for the fourth consecutive day in the face of a global strengthening of the dollar, due to growing expectations that the Federal Reserve (Fed) could extend its restrictive monetary policy.
The domestic currency MXN= was trading at 16.6162 per dollar, with a loss of 1.11 percent compared to the reference price of Reuters from Thursday.
“The market would be getting used to the idea that the Fed will not be able to begin lowering interest rates in the month of June, as had been discounted, and that it will possibly do so less than the three times that investors expected,” CIBanco said in an analysis note.
For now, investors’ attention is focused on the speeches of several US central bank officials during the day, in search of new signals about the direction of monetary policy.
The peso, which advanced to levels not seen in almost nine years, registered a decline of just over 1 percent in the week.
While the Mexican Stock Exchange (BMV) rose slightly, although it was on track to end the week with accumulated losses.
The leading index S&P/BMV IPC .MXX, which groups the most traded shares in the domestic market, advanced a marginal 0.02 percent to 56,844.29 points, shortly after the opening.
Over the course of the week it added a loss of 2.15 percent.
#Peso #recedes #trading #dollar
– 2024-04-18 15:58:48
