The peso appreciated on Tuesday amid a general weakening of the dollar and after a local inflation report that reinforced the prospects that the central bank will pause its cycle of cuts to the key interest rate.
The general consumer price index moderated in the first half of December more than expected to 3.72%. Core inflation also decreased more than expected and stood at 4.34%, although it continued above the official target of 3% +/- one percentage point.
In the final stretch of business, the peso was trading at 17.9046 units, a level not seen since July 2024, with an appreciation of 0.41%, while the dollar index fell against a basket of currencies following the publication of solid economic data in the United States.
The world’s largest economy grew faster than anticipated in the third quarter underpinned by strong consumer spending. Early estimates showed a GDP increase of 4.3%, much higher than economists’ forecast of 3.3%, according to a Reuters poll.
You may like: Wall Street rises with widespread gains, technology companies continue their streak
The figures raised expectations of more rate cuts by the Federal Reserve next year, agreed specialists, who highlighted that the lower business volume due to the holiday period at the end of the year exacerbated the reaction in the markets.
“For the investor, this closure suggests a more stable exchange market, with the exchange rate moving in a narrow range between 17.90 and 18.00, which reduces volatility and opens room for tactical movements if the dollar continues weak,” said Diego Albuja, analyst at ATFX Latam.
The benchmark S&P/BMV IPC stock index advanced 1.31% to 65,624.38 points, marking new historical highs, according to preliminary closing data.
The securities of the airport operator OMA led the increases, with 3.47% more to 253.45 pesos, followed by those of the insurance company Quálitas, which added 3.04% to 189.66 pesos.
In the secondary debt market, the 10-year bond yield fell one basis point to 9.02%, while the 20-year rate rose five basis points to 9.56%.
With information from Reuters.
Follow the information on the economy and finances in our specialized section
