With all eyes on the Federal Reserve’s (Fed) monetary policy this week and rising overall inflation in Mexico, the exchange rate in Mexico remains under pressure due to risk aversion among investors.
The political and macroeconomic front is taking its toll on the Mexican peso, which depreciated 0.64 percent this morning to trade at around 18.5720 units per dollar.
The return to the financial scene of the discussion of constitutional reforms in Mexico and the United States elections in November are once again generating volatility among investors, as the exchange rate closed on Friday in the wholesale market at 18.4427 pesos per spot dollar.
Meanwhile, the dollar index, which measures the performance of the currency against a basket of six international currencies, appreciated 0.34 percent, to 104.412 units.
Until then, the sense of relief brought by the publication of the Federal Reserve’s preferred inflation indicator at the end of last week will persist in financial markets. The containment of prices in the United States paves the way for an upcoming interest rate cut, to the point that analysts expect Wednesday’s Fed meeting to provide more clear clues of a rate cut in September.
Wall Street, for its part, has a positive opening at the start of the Fed week, amid a retreat in debt interest rates, and before the publication of results from technology giants such as Apple, Microsoft, Meta and Amazon.
The Nasdaq rose 0.94 percent, while the S&P 500 advanced 0.46 percent and the Dow Jones rose 0.10 percent.
The Mexican Stock Exchange (BMV), for its part, rose 0.32 percent to 52,986.59 units.
Investors, keeping an eye on the avalanche of results that has been typical of the last days of July, are keeping an eye on the movements of the oil market. The growing tension between Israel and Lebanon is boosting the price of a barrel of Brent above 80 dollars. The West Texas barrel, the reference in the United States, is reaching 77 dollars.
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– 2024-08-05 12:33:29
