He Mexican peso experienced a notable strengthening against the dollar this Tuesday, June 18, 2024driven by the publication of discouraging economic data in the United States that raised expectations of a rate cut by the Federal Reserve (Fed).
He US retail sales reportweaker than expected, has fueled speculation that the Fed could adjust its monetary policy before the end of the year, probably in September, to stimulate the economy.
The Mexican currency closed the day trading at 18.4135 per dollar, registering an increase of 0.51%. This advance follows a period of volatility, in which the peso depreciated by 0.26% before recovering, in a context marked by uncertainty about a proposal for reform of the justice system of Mexico that has worried investors.
The possibility of a cut in interest rates in the United States It usually has a positive effect in emerging markets such as Mexico, since it reduces the attractiveness of dollar-denominated assets and favors investment in currencies and markets with higher returns.
Price of the dollar in Mexican banks today June 18:
- Banco Afirme: $17.40 for purchase / $19.20 for sale
- Banco Azteca: $17.15 to purchase / $18.86 to sell
- Banorte: $17.15 to purchase / $18.70 to sell
- BBVA Bancomer: $17.54 for purchase / $18.68 for sale
- Banamex: $17.86 to purchase / $18.89 to sell
- Inbursa: $18.00 for purchase / $19.00 for sale
- Monex: $17.45 to purchase / $19.28 to sell
The current context of economic uncertainty in the United States contrasts with local tension in Mexico due to political proposals, which have had a previous impact on the devaluation of the currency after the June 2 elections.
At the regional level, the strengthening of the peso is part of a broader trend observed in other Latin American currencies, which also rose on the same day.
This reflects a global dynamic where investors recalibrate their investment expectations based on the monetary policies of developed economies.
Mexico’s stock market also showed signs of recovery, reacting positively to the prospects of looser monetary policy in the United States, which could encourage the flow of capital to markets with greater growth potential.
This change in economic dynamics offers respite for the peso, which had been under pressure in previous weeks.
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