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Mexican peso ends week with significant losses against the dollar

Vaseline 1 month ago

The Mexican peso fell significantly against the US dollar at the end of the week, closing at 17.09 units wholesale after reaching a high of 18.21 pesos per dollar earlier in the week. According to Bloomberg, the peso suffered a loss of 2.9%, or 47 cents, from the previous week, marking the second straight week of losses.

Of the 36 major currencies worldwide, the peso suffered the biggest depreciation this week and has posted a loss of 0.8%, or 14 cents, this year. The recent drop in value was attributed to global tensions sparked by Israel’s attack on Iran, leading to concerns of further escalation in the Middle East. In addition, expectations that the US Federal Reserve would maintain its interest rates further impacted the performance of the peso.

Market volatility has made the Mexican currency less attractive to investors, making operations in Mexico riskier. This trend was reflected in the Chicago futures market, where the peso was among the most depreciated currencies this week, along with the Indonesian rupiah and the Brazilian real.

On the plus side, the Chilean peso, the Peruvian sol and the Czech koruna were among the most appreciated currencies this week. At retail, the dollar sold for 17.51 ​​pesos at CitiBanamex counters, reflecting a 2.6% increase from the previous week.

In the stock market, the main indicator of the Mexican stock exchange gained 0.2% and closed at 55,858 units. Banorte analysts emphasized the importance of monitoring developments in the Middle East conflict, as this could affect inflation and oil prices.

Overall, the Mexican peso faced challenges during the week, with global market uncertainties impacting its performance against the US dollar. Investors closely monitor market dynamics and geopolitical events to assess the future trajectory of the currency.