The Mexican peso depreciated on Thursday after a positive inflation data a situation that reinforced expectations of less need for monetary adjustment in the country and in the midst of downward market correctionwhile the stock market noted a slight increase.
This week, the national currency was quoted on seven-year highsbut the strip winner slowed down after the release of consumer price data, which strengthened argument central bank that it would be necessary keep the key rate at the current level of 11.25% for a long time.
The peso traded at 17.3860 per dollar near the end of trading, down 0.16% from Wednesday’s Reuters benchmark price. breaking a streak of five consecutive days of earnings.
“Importantly, by reducing the likelihood that the Bank of Mexico will raise the interest rate again, Mexican monetary policy is beginning to diverge” from the positions of the largest central banks in the world, said Gabriela Siller. Basic banking analyst.
The peso has been helped this week by heightened investor interest in risky assets and was still trading near the close below the 17.40 threshold on Thursday, a level not seen since May 2016.
In equities, the S&P/BMV IPC rose just 0.09% to 54,338.18. before the initial trend changeas investor morale on Wall Street improved.
Mining company Industrias Peñoles rose 5.49% to 289.83 pesos; followed by a 3.08% rise in restaurant operator Alsea to 52.86 pesos.
In the debt market, 10-year yields fell six basis points to 8.82%, while 20-year bonds fell seven basis points to 9.08%.
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.
