The peso and the BMV advanced on Friday in the face of a general decline in the dollar and after a report in Mexico on inflation that supported the cautious tone offered the day before by the central bank regarding greater flexibility.
The general consumer price index moderated in October to 3.57% year-on-year, after two months of growth. Core inflation, for its part, stood at 4.28%, unchanged compared to September.
The currency was trading at 18.4522 units almost at the end of business, with an appreciation of 0.67%, as the dollar lost ground with the focus on the next steps of the United States Federal Reserve (Fed).
Banxico cut its key rate by 25 basis points (bp) on Thursday, as the market expected, and said that in the future it would evaluate reducing it again, although it modified the language of its prospective guidance, adopting a more cautious tone regarding greater flexibility.
Keep reading: Mexican peso advances after two sessions of losses, stock market rises
“October’s inflation reading validates Banxico’s caution in its latest cut,” said Mauricio Guzmán, head of investment strategy at the firm SURA Investments.
According to analysts at Grupo Financiero Banamex, the monetary authority would once again reduce the cost of credit in its next decision in December and then pause its adjustment cycle during the first quarter of 2026.
The benchmark S&P/BMV IPC stock index rose 0.49% to 63,402.32 points, according to preliminary closing data, being very close to its historical maximum of 63,682.80 units that it reached in the middle of the week.
The shares of Kimberly-Clark of Mexico, dedicated to the manufacture of personal care products, led the increases, with 2.62% more to 36.09 pesos, followed by those of the bottler and retailer FEMSA, which added 1.78% to 176.80 pesos.
In the secondary debt market, the 10-year bond yield fell 1 bp to 8.68%, while the 20-year rate fell two bps to 9.42%.
With information from Reuters
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