The peso depreciated this Tuesday in the face of a global advance in the dollar due to the caution of investors in the day before the monetary policy decision of the US Federal Reserve (Fed).
In Mexico, the central bank will also publish its last rate announcement of the year this week. Markets widely expect both authorities to cut interest rates, so much of the attention will be on the signals they offer about their movements next year.
The peso was trading at 20.1800 units almost at the end of business, with a decline of 0.28% compared to the LSEG reference price on Monday.
“With little, but relevant data still to come, investors are going through the last part of the year,” José Curiel, from the foreign exchange desk at Intercam Casa de Bolsa, wrote in an analysis report.
“The Fed will publish its latest monetary policy decision and analysts will be waiting for clues about future rate movements at (its chairman, Jerome) Powell’s press conference,” he added.
Read: What do analysts say about the markets this December 17?
For now, the session was marked by a solid US retail sales report for November, while another report showed that manufacturing production rebounded in the period, although less than expected.
At the local level, it was announced that retail sales fell unexpectedly in October, after three months of expansion, a bad sign about the performance of consumption in Latin America’s second largest economy during the final stretch of the year.
The benchmark S&P/BMV IPC stock index fell 0.69% to 50,500.34 points, in its second consecutive day of losses, with a cumulative decline of 2.2%.
Tuesday’s decline was mainly driven by shares of companies in the financial sector.
The securities of Grupo Financiero Banorte led the declines, with 4.25% less to 135.13 pesos, followed by those of Gentera, specialized in credit services, which subtracted 3.87% to 24.62 pesos.
In the debt market, the primary yields of Treasury Certificates (Cetes) decreased in the weekly auction of government securities, in most of their terms. The 28-day Cete benchmark rate was placed at 9.80%, 15 basis points below its previous auction.
With information from Reuters
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