Saturday, June 3, 2023

The peso closes the week with a surge and shines among the currencies that are gaining the most against the dollar.

The peso and the Mexican Stock Exchange (BMV) this Friday, driven by a better environment for global asset risks, reported progress in discussions in the United States of America to raise the public debt limit.

At the local level, it was revealed that the economy grew for the sixth consecutive quarter between January and March, although slightly below what was previously estimated.

Read: Mexico’s economy grew 1% in the first quarter of 2023

The peso traded at 17.6219 per dollar near the end of the trading day, up 1.27% against the Reuters price on Thursday, making it one of the global currencies that gained the most ground in the session against the dollar along with the Chilean peso.

“From a technical perspective, the indicators suggest that there is uncertainty about the value of the peso, which is due to less liquidity in the exchange market,” Banco Base said in an analysis note. “On the downside, the next relevant support is located at 17.60 per dollar, followed by the level of 17.52 pesos.”

However, analysts from Citigroup said in a report that they expect the currency to lose strength going forward and end the year at 18.80 per dollar.

During the week, the peso accumulates a yield of 0.83%.

Don’t miss: AMLO highlights the peso’s strength in the face of economic pressures on US debt

The benchmark index S&P/BMV IPC rose 0.52% to 54,025.45 points, marking its third gain after hitting its lowest level since March 28 earlier in the week.

The title of the producer of corn tortillas Gruma advanced, with 5.07% more, to reach 276.13 pesos, followed by Volaris airline, which added 4.55% to 24.12 pesos.

Also, BMV accumulated a weekly decline of 0.50%.

In the debt market, the yield on the 10-year bond fell four basis points to 8.95%, while the 20-year rate fell five basis points to 9.17%.

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.
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