The peso took a breather this Thursday as it appreciated after five sessions with losses, however, in October it had a decline of 1.62%.
The dollar stood at 20.0109 pesos at the close, a gain of 0.79% for the national currency compared to the previous session, according to data from Banxico.
The advance of the peso this Thursday occurred in the face of a global weakening of the dollar, after the publication of economic figures in the United States that did not seem to suggest a change in the Federal Reserve’s policy, according to a Reuters report.
The rise in the peso also occurred after the decision of the Japanese central bank to maintain its ultra-low interest rates, a good sign for the “carry trade” operations with the yen that have long played in favor of the Mexican currency.
With the depreciation throughout October, so far this year the peso has accumulated a fall of 18.09%, ranking as the third most depreciated currency in the broad basket of main crosses against the dollar, only behind the Argentine peso and the Brazilian real , according to a report from the Base financial group.
Specialists agreed that the peso could remain under pressure, at least in the short term, due to caution prior to the presidential elections in the United States next week.
“So far, although we have seen sessions in which the price has appreciated, like today, they are not signs that it is going to be gaining strength,” said Enrique Bazaldúa, independent foreign exchange market operator. “The problem here is the political uncertainty that is generated in the United States.”
Persistent local concerns about a series of constitutional changes promoted by the government also weigh on investors’ minds, including the controversial judicial reform, which led eight of the 11 Supreme Court ministers to resign this week.
Read: Dollar can reach 20.50 pesos in the short term if Trump wins: Banco BASE
The benchmark S&P/BMV IPC stock index fell 0.42% to 50,661.05 points, recording its worst monthly performance since the local elections in June, with a cumulative drop of 3.5%.
The titles of the tequila producer José Cuervo led the losses on Thursday, with 3.77% less to 26.30 pesos, followed by those of the mining company Grupo México, which fell 3.15% to 104.69 pesos.
In the debt market, the central bank placed 47,487 million pesos in an exchange of government instruments.
In the operation, the participants delivered Bonds and Udibonos with different terms between 121 and 485 days in exchange for Bonds with maturities between two and 10 years.
With information from Francisco Rivera and EFE
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