Thursday, September 21, 2023

The Mexican peso continues to rise against the dollar

The Mexican peso continued its three-day upward move on Wednesday, while the stock market fell after August inflation data from the United States that raised doubts about a possible brake on the Federal Reserve’s restrictive monetary policy.

Investors digested a rise in consumer prices in the United States, fueled by a rise in gasoline prices, as well as core inflation, although the increase was more modest.

The local currency traded at 17.12 per dollar, up 0.41% from the Reuters benchmark price on Tuesday, in a week in which the currency stayed out of the red and rose more than 2.5% recorded.

“The Mexican peso appreciates (…) and has a positive initial reaction to the inflation report in the United States, a reference that attracts the attention of the day,” said CiBanco analysts.

The company also noted that this figure would not change its views on whether the Fed will maintain interest rates at its next meeting this month, but “due to rising energy prices, there is a possibility of a rate hike before the end of the year.” it was pointed out.

The benchmark stock index S&P/BMV IPC fell 0.51% to 51,595.43 points as risk aversion continued to prevail among investors.

The biggest losses were suffered by the securities of the airline Volaris, which fell by 5.24% to 54.26 pesos, followed by those of the mining company Industrias Peñoles, which fell around 3% to 209.89 pesos.

In the debt market, the 10-year bond yield and 20-year bond interest rate were unchanged at 9.75% and 9.77%, respectively.

Nation World News Desk
Nation World News Desk
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