Mexico City.- The Mexican peso opened the second half of July with a marked depreciation, as the attack on US presidential candidate Donald Trump over the weekend increased exchange rate volatility thanks to a greater possibility of seeing a second term for the Republican candidate.
The domestic currency was trading at 17.85 per dollar, down 1.30 percent from the Reuters reference price of 17.6060 pesos on Friday, after five consecutive days of gains.
The prospect of a return to the White House by the former president after the failed attack during an election rally in Pennsylvania at the weekend raised concerns about the potential impact of some of his policies, analysts agreed.
“Although Trump has not made any attacks against Mexico, as occurred in the 2016 elections, he maintains a firm stance against illegal migration and in favor of trade protectionism, so his probable victory continues to generate nervousness,” said Gabriela Siller, director of analysis for the local firm Banco Base.
Ve por Más bank said the main catalysts for the session were the increased probability of former President Donald Trump returning to the White House after the events of the weekend and the fact that some of his potential policies are being discounted.
Investors are also looking to the Federal Reserve Chairman Jerome Powell and San Francisco Fed head Mary Daly to speak at public events during the day, looking for clues about the direction of interest rates.
In this regard, Monex added that the peso has halted its appreciation rally of last week, remaining in negative territory against the dollar, like most currencies of emerging economies.
For the rest of the week, the currency is expected to fluctuate in a range of 17.50 to 18.20 units per dollar, according to CIBanco.
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