On Wednesday, the peso depreciated and lost its gains the day before, while investors continue to ponder the risks associated with the deterioration of the banking sector in Europe.
the national currency is quoted at 18.9007 per dollar.with a loss of 1.67% compared to the base price Reuters on Tuesday, wiping out the previous day’s gains but offsetting some of the decline recorded earlier in the morning as it approached a 2% decline.
“Increases caution in Europewhere the listing of 7 banks has been suspended,” Monex Grupo Financiero analysts said in a note.
“Psychological resistance at $19.00 seems to be gaining momentum so this will be necessary for exchange rate close over it to observe a larger increase,” they added in regards to weight.
Shares of European banks fell sharply on Wednesday, and Credit Suisse fell to a new low amid renewed investor concern over tensions in the sector caused by a sudden The collapse of the Silicon Valley bank (SVB).
Financial regulators and executives around the world have sought to assuage contagion concerns following last week’s bankruptcy of technology bank SVB and another bank. American bankbut concerns remain.
Drop more than 20% of shares Credit Suisse sent the European banking index .SX7P down more than 6%, while the Swiss flagship’s five-year credit default swaps (CDS) reached a new all-time high, highlighting growing investor concern.
Reuters
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
