The peso depreciated this Friday to levels not seen in more than two years, in the face of a global strengthening of the dollar after the release of a weak employment report in the United States, in a market awaiting the presidential election in that country of the November 5.
During the day he highlighted that the International Monetary Fund renewed a flexible credit line for about 35,000 million dollars to Mexico, however, it warned that its economy is moderating.
The peso closed at 20.2670 units, with a loss of 1.27% compared to the reference price of Reuters on Thursday, although during the day it weakened to 20.2980 per dollar, its worst level since September 2022.
“We are a few days away from the elections in the United States and most of the favoritism is going towards (Donald) Trump, it is a victory that is very likely to happen and this is influencing the market,” said Eduardo Ramos, senior analyst. of markets of the digital broker VT Markets Latam.
“With the history of proposals that it has had towards relations with Mexico, particularly with the tariff issue, it means that investors are literally fleeing from risk,” he added.
The peso ended the week with a cumulative decline of 1.6% also due to local concerns about a series of controversial reforms promoted by the Government.
Even so, expectations for the currency in the coming months are relatively optimistic.
On the Chicago Mercantile Exchange, speculative positions in favor of an appreciation of the Mexican peso increased, after two consecutive weeks of decreasing.
Meanwhile, a central bank survey among private analysts showed that they anticipate closing the year at 19.80 per dollar, a gain of 2.3% compared to its current levels.
The benchmark S&P/BMV IPC stock index fell a marginal 0.08% to 50,622.39 points, adding a weekly drop of 2.2%.
The titles of the telecommunications firm Megacable led the losses of the session, with 4.26% less to 42.03 pesos, followed by those of the airport operator OMA, which subtracted 2.68% to 163.12 pesos.
In the secondary debt market, the 10-year bond yield jumped 16 basis points to 10.20%, while the 20-year rate rose 19 basis points to 10.50%.
With information from Reuters.
Follow information about business and current events in Forbes Mexico
Do you like to get informed through Google News? Follow our Showcase to have the best stories
