The peso drops 1.56%, to $19.69 per dollar

In the midst of a drop in oil prices of up to 4 percent and in the midst of greater risk aversion in the country, the peso-dollar exchange rate rose this Tuesday to its highest level in five weeks.

The Mexican currency had a daily depreciation of 1.56 percent, equivalent to 30.29 cents to close at 19.6982 pesos per dollar spotparity not seen since September 9.

According to the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 19.7600 units and a minimum of 19.5440 in the wholesale market.

During yesterday’s session, the announcement made by President Claudia Sheinbaum about investments of up to 20 billion dollars, during the CEO Dialogue between Mexico and the United States, and details of the reform of the Judiciary and the process of electing judges, stood out. .

However, threats from former President Donald Trump, who is again running for the White House, regarding tariffs on Chinese products from Mexico, imposed more pressure on the national currency.

Operators have raised uncertainty due to the elections in the United States and because the concern of American businessmen about judicial reform has not disappeared.said Jorge Gordillo, director of economic and stock market analysis at CIBanco.

Thus, the peso extended its weakness against the dollar, as happened with emerging currencies whose economies depend on industrial raw materials (copper, aluminum, nickel), given the weakness of the economy of China, the main consumer of these metals.

Meanwhile, the dollar index, which measures the behavior of that currency against a basket of six currencies, weakened 0.07 percent, to 103,010 units.

The expectation that the Federal Reserve will be cautious in its interest rate cuts and the drop in the price of oil also caused weakness in the exchange rate.

Meanwhile, the Dow Jones fell 0.75 percent, to 42,740.42 points, at a time when investors analyzed the latest batch of business results.

In turn, the S&P 500 fell 0.76 percent, to 5,815.26 units, and the technological Nasdaq fell 0.98 percent, to 18,322.05 integers.