Against the backdrop of stronger economic growth in the United States, which strengthened the dollar, and heightened risk aversion in Mexico, the peso showed weakness and returned to heading towards 20 per dollar.
The Mexican currency returned to losses, after the pause it made in the previous session when it depreciated by 0.98 percent this Thursday, equivalent to 19.21 cents, to close at 19.8338 pesos per dollar. spota level not seen since October 2022.
According to data from the Bank of Mexico, the exchange rate in the interbank market ranged between a maximum of 19.9210 units and a minimum of 19.7580.
While investors were assimilating greater growth in Mexico’s main trading partner, at the local level, the Electoral Court endorsed the qualified majority of Morena and its allies, who are preparing to approve the judicial reform. Thus, the Mexican peso came close to accumulating its second worst monthly drop in the year, since in August it accumulated a loss of 6.45 percent until yesterday’s close, only surpassed by the June drop of 7.77 percent. So far this year, the peso has depreciated 16.9 percent against the dollar.
Following the release of US GDP data, which surprised markets, the dollar strengthened internationally. According to the weighted index, DXY, which measures the performance of the US currency against a basket of six international currencies, it rose 0.31 percent yesterday, to 101.302 units.
Meanwhile, the Mexican Stock Exchange (BMV) rose 1.33 percent, equivalent to an advance of 699.09 points, to close at 53,138.96 points.
The Price and Quotation Index (CPI) thus broke a streak of three consecutive days of losses and recovered the level of 53,000 points. With yesterday’s gains, the CPI erased the losses of August, while in the year-to-date it has lost 7.4 percent.
Highs on the Dow Jones
The Dow Jones closed at a record high on Thursday, its third this week, while other indexes ended lower as investors assessed earnings from Nvidia, along with data showing the U.S. economy grew more than expected.
The Dow Jones Industrial Average gained 243.63 points to end the session at a record high of 41,335.05. The tech-heavy Nasdaq erased earlier gains and fell 0.21 percent to 17,519.04, while the S&P 500 closed flat at 5,591.96.
Shares stumbled as Nvidia’s numbers came in. While the chipmaker’s quarterly revenue and profit forecasts beat estimates, the size of the improvements fell short of expectations. That began to raise questions about whether the artificial intelligence (AI) boom had peaked. Wall Street remained bullish on Nvidia shares, but they ended the day down 6.38 percent.
Oil prices rose more than a dollar a barrel on Thursday as supply disruptions in Libya and plans to cut output in Iraq raised fears of a tighter market.
Brent futures gained 1.64 percent to $79.94 a barrel, and U.S. West Texas Intermediate futures rose $1.39, or 1.87 percent, to $75.91.