Mexico City.- The Mexican peso appreciated on Wednesday after two consecutive sessions of significant losses, while investors await the release later in the day of the Quarterly Report of the Bank of Mexico (Banxico), where it will present its new macroeconomic framework, Reuters reported.
The exchange rate is trading around 19.48 pesos per dollar in the international market (Forex), after marking 19.7608 units yesterday, the worst closing level for the domestic currency since December 2022, due to concerns about the impact of the controversial judicial reform.
In the two previous trading days, the peso accumulated a 3.4 percent decline. The retail price of the dollar exceeded 20 pesos per unit yesterday, closing at 20.26 pesos, also its highest price in almost two years. Today it is sold at 19.97 pesos at Citibanamex counters.
For now, participants’ attention is focused on any update from the central bank on its outlook for economic growth and inflation, amid expectations of further cuts to the key interest rate.
“Today, the peso corrects part of the decline of previous sessions, when it was affected by a greater possibility of approval for constitutional reforms and an increase in the perception of risk in the markets,” said Monex. “The Bank of Mexico will publish its Quarterly Report. We anticipate a downward revision of its estimate of economic growth for 2024, which currently stands at 2.4 percent,” noted Citibanamex. For its part, Bx+ did not rule out that the markets will operate with some caution, in a context of scarce economic information and awaiting the publication of Nvidia’s corporate report later in the day. The Mexican Stock Exchange (BMV) also rises today after two days of losses in a market with its sights set on the release of Banxico’s report. The leading S&P/BMV IPC index, which includes the most traded shares on the domestic market, rose 0.44 percent to 52,703.20 points shortly after the opening. In the two previous sessions, the Stock Market accumulated a loss of 1.9 percent.
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