The peso appreciated this Friday after reaching its worst level in two and a half years, while the BMV erased its initial gains, in an erratic market with its sights set on Donald Trump’s inauguration as president of the United States on Monday. .
The next president has threatened to impose tariffs on the three largest trading partners of the United States – Canada, China and Mexico -, including one of 25% on Mexican imports until the Latin American country takes measures against drug trafficking and irregular migration. .
The currency was trading at 20.7831 per dollar almost at the end of business, with a gain of 0.23%, after weakening during the early hours to 20.9400 units, a level not seen since July 2022.
“We have had a very volatile week, as a prelude to Trump’s inauguration,” said Intercam Casa de Bolsa, in an analysis note.
Read: Peso advances after reaching worst level since 2022
“While it is true that the threats towards Mexico have been constant, it is also true that we continue to be a strategic trade partner and as some high-ranking officials from both governments have mentioned, it is better to conciliate and reach agreements,” he added.
According to official data, 83% of national exports were destined for the United States between January and November of last year, becoming one of the main drivers of the Mexican economy which, according to a Reuters survey, would remain slow this year.
In an update of its outlook for the global economy, the International Monetary Fund projected Mexico’s GDP expansion of 1.4% for this year, below the 1.8% estimated for 2024.
Amid the uncertainty, on the Chicago Mercantile Exchange, speculative positions in favor of a future appreciation of the peso decreased for the second consecutive week.
The benchmark S&P/BMV IPC stock index fell a marginal 0.01% to 49,940.89 points, after having risen almost 1% during the day.
The securities of the Regional bank, known as Banregio, led the losses, with 2.46 less to 124.52 pesos, while those of the Grupo Bimbo bread maker recorded a better performance, gaining 5.36% to 52.10 pesos.
In the secondary debt market, the 10-year bond yield rose seven basis points to 10.34%, while the 20-year rate rose 11 basis points to 10.73%.
With information from Reuters
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