Thursday, June 8, 2023

The peso chain freezes on five days of losses and is down 2.73%

The Mexican peso declined for the fifth day in a row against the US dollar. Due to a weak outlook for risk assets, the local currency extended a negative streak that began last Monday, when it hit its best level in seven years.

Traders are tracking discussions between Democrat Joe Biden’s government and House of Representatives leader Republican Kevin McCarthy to raise the limit on US sovereign debt and prevent it from defaulting in 10 days.

In this context, the exchange rate closed at the level of 17.9013 units at the end of the day. That compared to the Bank of Mexico’s (Banxico) official closing on Friday of 17.7523 units per dollar. This meant a loss of 14.90 cents, or 0.84 percent, for the Mexican currency.

The crossing operated in an open range with a maximum of 17.9587 units and a minimum of 17.7484 units. Meanwhile, the dollar index (DXY), which measures the greenback along with other six G7 currencies, rose marginally 0.04% to close at 103.24 points.

“The peso lost ground at the beginning of the week and remained the most lagging emerging currency for most of the day,” said Juan Carlos Cruz Tapia, a professor at EBC. The main catalyst remains uncertainty about the United States debt. “

On the local front, various analysts highlighted the annexation of a railway section operated by Grupo México Transportes’ company Ferrosur by the government of President Andrés Manuel López Obrador as a factor in the pressure for the local currency.

“Market confidence has been affected by the Ferrosure rails takeover,” Massari Casa de Bolsa said in a note. “These types of maneuvers violate the rule of law and create legal uncertainty which affects investor confidence,” he said.

In five consecutive days with losses, the Mexican currency accumulated a decline of 47.53 cents, or 2.73 percent, against an official close of 17.4260 units on Monday of last week. Cruz Tapia said, “Viewing range this week: 17.75 to 18.25”.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news


Please enter your comment!
Please enter your name here