Mexico City. In the midst of a United States Federal Reserve (Fed) that is in no hurry to continue with its movements to lower its interest rate and given the expected decision of the Bank of Mexico (BdeM) to cut its reference rate this Thursday, The Mexican peso had an initial upward reaction, but closed with a gain against a dollar that reached its best level in a year.
Jerome Powell, president of the Fed, declared this Thursday that the monetary authority is in no hurry to continue with its rate movements, so, although it does not modify the perspective of a decline in December, the process for 2025 may be slower .
Meanwhile, the market had already discounted the monetary movement of the BdeM, to raise the reference rate to 10.25 percent, so the Mexican currency registered a daily appreciation of 0.43 percent, to 20.4261 pesos per dollar spot.
According to data from the Bank of Mexico, the exchange rate operated between a maximum of 20.6240 units and a minimum of 20.3880 units. The Mexican peso advanced for the second consecutive day.
A few hours after the presentation of the 2025 Economic Package, the first by President Claudia Sheinbaum, where economic agents will be attentive to the proposal to reduce the fiscal deficit incurred by the government in 2024, the national currency was imposed at one dollar strengthened globally.
The DXY index, which measures the behavior of the US currency against a basket of six international currencies, appreciated 0.39 percent, to 106,795 units, levels not seen in a year.
The Mexican stock market is experiencing a different panorama, which was down for five consecutive days, at 50,500 points, being the worst market, measured in dollars, worldwide, so far this year.
The Price and Quotation Index (IPC) of the Mexican Stock Exchange fell 0.38 percent this Thursday, to 50,553.31 integers, affected by the fall in Minera Frisco shares, 7.47 percent; Walmart, 2.32 percent; Femsa, 2.10 percent; Peñoles, 1.90 percent.
Meanwhile, the US stock markets took advantage of Powell’s statements to take profits, so Wall Street closed with falls. In addition, the rise in US inflation added to this Thursday’s losses.
The Nasdaq, which brings together the leading companies in the technology industry, fell 0.63 percent, to 19,109.29 points. Meanwhile, the S&P 500 lost 0.60 percent, to 5,949.17 points.
Oil prices fluctuated this Thursday but ended higher, in a market that is also concerned about the prospect of oversupply in the coming months.
The price of a barrel of North Sea Brent for delivery in January gained 0.39 percent, to $72.56. Meanwhile, the West Texas Intermediate (WTI) for December gained 0.39 percent, to $68.70.
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#Mexican #peso #awaits #Economic #Package #dollar
–
**How does the article connect the Federal Reserve’s monetary policy decisions to the potential performance of the Mexican peso?**
## World Today News Interview: The Mexican Peso in Uncharted Waters
**Introduction**
Welcome to World Today News. Today, we’re delving into the dynamic world of global finance, focusing on the recent performance of the Mexican peso and its implications for the Mexican economy. We’re joined by two esteemed guests: **Dr. Maria Hernandez,** a leading economist specializing in Latin American markets, and **Mr. Carlos Ramirez**, a seasoned financial analyst with extensive experience in currency markets.
**Section 1: The Fed’s Signal and the Peso’s Ascent**
* **Interviewer:** Dr. Hernandez, the article highlights the Federal Reserve’s cautious approach to further interest rate cuts. How do you interpret Jerome Powell’s statement regarding the pace of future rate adjustments, and what impact might this have on the Mexican peso in the coming months?
* **Dr. Hernandez:**
*(Dr. Hernandez provides her analysis, drawing on economic theory and historical trends. She might discuss the potential attractiveness of the peso as a higher-yielding asset compared to the dollar if US rates remain stagnant, and the role of investor sentiment in currency fluctuations.)*
* **Interviewer:** Mr. Ramirez, the peso strengthened against the dollar despite Jerome Powell’s comments. What other factors could be contributing to this upward trend?
* **Mr. Ramirez:**
*(Mr. Ramirez could mention the Bank of Mexico’s anticipated rate hike, which is already reflected in the peso’s performance. He might also discuss the role of domestic economic factors in Mexico, any perceived stability in the Mexican political landscape, and the potential impact of global events on emerging market currencies.)*
**Section 2: The Economic Package and Investor Confidence**
* **Interviewer:** Dr. Hernandez, Mexico’s new President, Claudia Sheinbaum, will be presenting her first Economic Package. What aspects of this package will investors be most closely watching, and how could it potentially influence the Mexican peso’s trajectory?
* **Dr. Hernandez:**
*(Dr. Hernandez could elaborate on the importance of fiscal responsibility and the government’s plan to reduce the deficit. She might discuss potential investments in infrastructure or other sectors that could boost economic growth and strengthen investor confidence.)*
* **Interviewer:** Mr. Ramirez, given the Mexican stock market’s recent downturn, is there a disconnect between the performance of the peso and the stock market? What factors might be driving this divergence?
* **Mr. Ramirez:**
*(Mr. Ramirez could offer insights into the specific sectors experiencing challenges in the Mexican stock market. He might discuss potential risks perceived by investors, such as global economic uncertainties or industry-specific issues, and how these could differ from the factors driving the peso’s performance.)*
**Section 3: Global Headwinds and the Future Outlook**
* **Interviewer:** Looking ahead, what are the key global economic factors that could shape the Mexican peso’s performance in the near to medium term?
* **Dr. Hernandez:**
* *(Dr. Hernandez could discuss the potential impact of inflation on global interest rates, the strength of the US dollar, and the outlook for commodity prices – especially oil, which plays a significant role in the Mexican economy.)*
* **Interviewer:** Mr. Ramirez, we’ve seen oil prices fluctuating recently. How might volatility in global energy markets affect the Mexican peso’s stability?
* **Mr. Ramirez:**
* *(Mr. Ramirez could explain the link between energy prices and the Mexican economy’s performance, highlighting the potential impact of rising or falling oil prices on the country’s trade balance and government revenues.)*
**Conclusion**
* **Interviewer:** Dr. Hernandez and Mr. Ramirez, thank you both for sharing your valuable insights on this complex topic. As we’ve seen, the Mexican peso’s performance is influenced by a confluence of domestic and global factors. Navigating this evolving landscape will be crucial for investors, policymakers, and individuals alike.
* *(The interview concludes with a call to action, encouraging viewers to stay informed about economic developments and seek expert advice when making financial decisions.)*
