Mexico City. As a result of the growing bets of lower interest rate cuts in the United States and the caution of the Bank of Mexico, the Mexican peso continued its winning trend against the dollar, appreciating 0.75 percent this Monday, equivalent to 12.32 cents. , to close at 16.3368 units per spot dollar, a new best level since 2015.
The Mexican currency seeks to consolidate below 16.50 per dollar, which is why it reached its best level since August 2015, when it was quoted at 16.3360 units per dollar in the interbank market. So far this year, the Mexican peso has accumulated a gain of 3.7 percent and is the most appreciated currency internationally against the dollar in 2024.
According to the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 16.3650 units and a minimum of 16.3150 units.
After the solid March employment report in the United States, the market expects that there will be two interest rate cuts this year and that the Bank of Mexico will be cautious and keep rates around 10 percent; That is, the rate differential between both economies will remain high, being an attraction for international investors.
The dollar index, the DXY, which measures the behavior of the US currency against a basket of six international currencies, depreciated 0.16 percent, to 103,905 units.
On the eve of the release of Mexico’s inflation data for March, US inflation and the Fed minutes, the markets began the week with a mini-truce, as Israel’s withdrawal to the south of the Gaza Strip may help de-escalate a conflict that threatens to spread across the Middle East.
The 10-year Treasury yield stood at 4.42 percent, following a bond selloff last week. While the benchmark has pared its gains, it is still within reach of the key 4.5 percent level seen by some as a possible turning point to reach last year’s highs. Wall Street and oil prices closed with losses.
U.S. stocks ended Monday’s session little changed as investors entered a big week that will see new inflation data test opinions on rate cuts and the start of the first-quarter earnings season.
The Dow Jones, S&P 500 and tech-heavy Nasdaq closed near the flat line; the first fell 0.03 percent; the next 0.04 percent and the last advanced 0.03 percent.
For its part, the Mexican Stock Exchange fell 0.18 percent, equivalent to 102.50 units.
International oil prices fell this Monday after a streak of rising days, in a market that took profits. The price of a barrel of North Sea Brent for delivery in June fell 0.96 percent, to $90.38. For its part, the West Texas Intermediate (WTI) for May lost 0.55 percent, closing at $86.43. The WTI had been rising for six consecutive days.
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– 2024-04-12 13:32:08
