The Mexican peso extended its decline on Thursday, seen in the previous three sessions, and was once again positioned among the currencies of emerging countries that had the greatest losses against a dollar that recovered internationally.
The exchange rate showed signs of weakening after the inflation and gross domestic product (GDP) figures were released, showing that both macroeconomic variables slowed down in Mexico, which reinforces the Bank of Mexico’s narrative of cuts and the feeling of risk aversion remained due to the implications of the Reform of the Judicial Branch in Mexico.
The Mexican currency registered a daily depreciation of 0.70 percent, equivalent to 13.58 cents against the US currency, to close in the wholesale market at 19.4791 pesos per spot dollar, accumulating a loss of 84 cents in the last four sessions.
According to the Bank of Mexico, the exchange rate operated between a maximum of 19.4900 units and a minimum of 19.4000 units.
However, after the closing reported by the Bank of Mexico, the exchange rate exceeded 19.50 per dollar, after Ken Salazar, the United States ambassador to Mexico, published a statement saying that the reform to the Judicial Branch that is expected to be approved by Congress represents a risk for the country’s democracy.
The Bank of Mexico’s monetary policy minutes were also published, which show a marked division in the decision to lower the reference rates to 10.75 percent on August 8.
The dollar index, which measures the performance of the US currency against a basket of six international currencies, appreciated 0.48 percent to 101.395 units.
Meanwhile, Wall Street ended lower on Thursday as weak economic data renewed concerns about the pace of the U.S. economy’s slowdown, the day before Federal Reserve Chairman Jerome Powell speaks at Jackson Hole.
The Dow Jones Industrial Average fell 0.43 percent to 40,712.78 points, the S&P 500 lost 0.89 percent to 5,570.64 points and the Nasdaq lost 1.63 percent to 17,626.07 points. Jobless claims remained flat, and manufacturing activity fell.
The Mexican Stock Exchange, in line with Wall Street, ended lower, with a loss of 1.02 percent, to 53,316.20 points.
Brent crude futures gained 1.54 percent to $77.22 a barrel, while U.S. West Texas Intermediate crude futures rose 1.5 percent to $73.01 as expectations of a U.S. interest rate cut within weeks fueled a rally after four days of falling prices.
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– 2024-08-27 07:28:54
