The peso ends the week with losses, despite lower interest rates

The Mexican peso fell and reversed its initial gains, a day after the boost registered, following the announcement by the Bank of Mexico, which cut its interest rate on Thursday.

In wholesale operations, the exchange rate remained at 19.69 units per dollar, a decline for the peso of 6 cents compared to the previous day and 28 cents compared to Friday of the previous week.

The retreat of the Mexican currency occurred, despite a weakening of the dollar, after it was reported that better-than-expected inflation data in the United States strengthened expectations that a new major rate cut would come from the Federal Reserve in November. However, the data in the internal context did not help the Mexican currency much, once reports spread that the Undersecretary of the Treasury, Gabriel Yorio, will not be part of the next government, which according to operators added pressure to the Mexican currency.

“The peso was affected by the monetary policy expectations of the Bank of Mexico and the Fed (United States Federal Reserve), after evaluating the latest economic data,” Monex Grupo Financiero said in an analysis note.

During the week, the currency added a decline of 1.5 percent, however the future prospects improved slightly. On the Chicago Mercantile Exchange, speculative positions in favor of an appreciation of the Mexican peso rebounded after having reached their lowest level since March 2023.

Stock market drops 1.52%

For its part, the reference index of the Mexican Stock Exchange (BMV) fell 1.52 percent to 52,778.17 points, although during the week it accumulated a return of 1.1 percent. The titles of the mining company Industrias Peñoles led the losses of the session, with 7.04 percent less to 271.77 pesos, followed by those of the cement company GCC, which subtracted 3.78 percent to 147.95 pesos.

The BMV separated itself from the behavior on Wall Street, where the Dow Jones Industrial Average rose 0.31 percent and reached a historical maximum of 42,305.62 units, as investors welcomed a moderate inflation report, which also boosted the small-cap stocks, which will benefit from further interest rate cuts from the Federal Reserve.

The tech-heavy Nasdaq fell 0.40 percent and the S&P 500 fell 0.13 percent, but both remained near recent all-time highs. Wall Street’s three major indexes posted their third consecutive week of gains.

Oil prices rise, but cannot avoid weekly losses

Oil prices rose slightly but fell on the week as investors weighed expectations of greater global supply against fresh stimulus from top crude importer China.

Brent added 38 cents to $71.89 and the US WTI gained 51 cents to $68.18 per barrel and the Mexican export mix added 43 cents to $63.80 per barrel. However, in the week Brent fell 3 percent, WTI nearly 5 percent and the mix fell 2.82 dollars (4.23 percent).