Heraldo USA > actualidad

Mexican Peso Registers Four Negative Sessions

The Peso Is Being Affected by Local Political Volatility: Expert

Compartir este artículo

Facebook
Twitter
WhatsApp
Email

The Mexican peso depreciated by 0.70 percent against the dollar in spot market trading, marking four consecutive sessions of losses against the U.S. currency, according to figures from Banco de México.

Publicidad

As a result, the exchange rate averaged 19.4791 pesos per dollar, with a session low of 19.4000 and a high of 19.4900 per unit. According to the Economic, Exchange Rate, and Market Analysis Department of Grupo Financiero Monex, the peso was impacted by local political volatility and the economic data released in Mexico on Thursday.

Gabriela Siller Pagaza, Director of Financial Economic Analysis at Grupo Financiero Base, noted that the depreciation of the Mexican currency against the greenback was due to the broad strengthening of the U.S. dollar by 0.40 percent, according to the weighted index. This dollar strengthening was driven by market anticipation of comments from Federal Reserve Chairman Jerome Powell, who is scheduled to speak this Friday at the central bankers' symposium in Jackson Hole, Wyoming.

Powell is expected to provide more clarity on the trajectory of interest rates in the coming months, especially as the labor market has weakened, the expert pointed out.

Publicidad

Another factor influencing the exchange rate was the publication of Mexico's inflation data, which showed a decline of 0.03 percent in the first half of August, following a 0.14 percent increase in the second half of July. The annual rate was 5.16 percent, the lowest since the first half of June this year, which was 4.78 percent.

Publicidad

This, she explained, put upward pressure on the exchange rate as it is expected that Banco de México will continue cutting the benchmark interest rate this year, which currently stands at 10.75 percent.

Follow Heraldo USA on Google News, CLICK HERE.

Temas relacionados

Publicidad

Publicidad

Publicidad