Weight gains its third consecutive week of decline

The peso posted its third consecutive week of losses, this time due to a strengthening of the dollar after a mixed labor report in the United States, while domestically the progress of the judicial reform process in Congress was influential.

In wholesale operations, the Mexican currency fell 6 cents (0.33 percent), to 19.99 units per dollar, according to the closing price of the Bank of Mexico. The peso mitigated the losses, since in transactions during the session it broke the barrier of 20 units per dollar, for the second consecutive day.

The peso has lost 29 cents (1.50 percent) this week, and has fallen 1.36 units in the last three weeks, or 7.34 percent.

“The peso was affected by local political volatility and the impact of economic data in the United States, for the Federal Reserve’s narrative,” said Monex Grupo Financiero.

At the local level, after the bill has been approved by the Chamber of Deputies, senators are expected to begin the legislative process on Sunday to approve, first in committees and then in plenary, the constitutional changes to the Judiciary, which, among other things, propose the election by popular vote of judges, magistrates and ministers of the Supreme Court.

The Mexican currency has lost its nickname of “super peso” since the end of May, prior to the elections on June 2, and to date it has lost three pesos, equivalent to 17.85 percent of its value, amid persistent volatility.

Until three weeks ago, the factors that weighed most heavily on the exchange rate were considered to be external, such as the slowdown in job creation in the United States and fears of a recession in that country, the appreciation of the Japanese yen, among others. Currently, it is observed that the domestic political sphere has been a determining factor in the variation of the exchange rate.

For its part, the benchmark index of the Mexican Stock Exchange (BMV) fell 1.12 percent to 51,083.44 points, with a cumulative weekly decline of 1.7 percent, also in its third week of losses.

The local stock market followed the trend of its peers on Wall Street, where the main indices fell, weighed down by an employment report that showed a continued slowdown in the US labor market, but left traders uncertain about the level of a likely interest rate cut expected this month by the Federal Reserve.