The peso appreciated this Thursday after Banco de México (Banxico) cut its key interest rate by a quarter of a percentage point, as expected by the market, while the stock market fell for the fourth consecutive day.
The rate move followed a similar cut in borrowing costs by the US Federal Reserve (Fed) on Wednesday, however, Banxico’s governing board warned it could consider larger adjustments at future meetings given progress. in inflation.
The peso ended the session at 20.2900 per dollar, with a gain of 0.29% compared to the LSEG reference price on Wednesday, although earlier it weakened to 20.5100 units, one of its worst levels so far in December.
Read: Peso advances after three days of losses and prior to Banxico’s rate decision
“The peso benefited from Banxico’s cut and inflation expectations towards 2025, assuming a more cautious approach and possibly aligned with the Fed,” said Monex Grupo Financiero, in an analysis note.
So far this week, the peso had fallen 1.15%.
BMV falls 1.43%
The benchmark S&P/BMV IPC stock index fell 1.43% to 49,254.47 points, with a cumulative loss of 4.6% in the last four days.
The titles of the mining company Industrias Peñoles led the declines, with 5.91% less to 276.21 pesos, followed by those of the pharmaceutical company Genomma Lab, which subtracted 3.88% to 25.51 pesos.
In the secondary debt market, the 10-year bond yield rose 10 basis points to 10.29%, while the 20-year rate rose 11 basis points to 10.62%.
With information from Reuters
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