Mexican Peso Weakens, Heading for Weekly Loss

The Mexican peso retreats against the dollar this Friday morning. The local currency falls in line with other Latin American currencies. Today’s session lacks significant economic data and shows low trading volume due to the year-end period.

The spot exchange rate stands at 20.3363 pesos per dollar. Compared to yesterday’s official close of 20.2083 units, reported by the Bank of Mexico (Banxico), this movement represents a decline of 12.8 cents or 0.63 percent for the peso.

The dollar price moves within a range between a maximum of 20.3590 units and a minimum of 20.2156 units. The Dollar Index (DXY) of the Intercontinental Exchange, which measures the greenback against a basket of six reference currencies, falls 0.16% to 107.96 points.

Some analysts point out that markets closely monitor events in the Middle East. Israel’s attack on several targets in Yemen has caught attention.

This focus comes amid the absence of economic indicators that could provide clues about the future of Federal Reserve interest rates. The peso looks set to close a negative week.

Mexican Peso Weakens, Heading for Weekly Loss. (Photo Internet reproduction)

Last Friday, it closed at 20.0342 per dollar, implying an accumulated retreat of 30.21 cents or 1.51 percent. Banco Base predicts the peso will oscillate between 20.39 and 20.21 units today.

Mexican Stock Exchange Rises for Second Day

Mexico’s stock exchanges operate with gains this Friday morning. Local stock indices rise for the second day in early trading. This occurs without relevant economic data and with expectations of low trading volume.

The leading S&P/BMV IPC index of the Mexican Stock Exchange (BMV) advances 0.74% to 49,903.52 units. The FTSE BIVA index of the Institutional Stock Exchange (Biva) rises 0.82% to 1,013.81 units.

Most stocks within the benchmark index operate with gains. Kimberly-Clark de México shares stand out, rising 2.88% to 29.66 pesos. Megacable follows with a 2.32% increase to 34.40 pesos, and Grupo BMV gains 2.28% to 34.12 pesos.

The local stock market advances for the second day after hitting its worst level of the year earlier this week. Despite the rebound, it accumulates a loss of around 13.5% so far in 2024. Political concerns in Mexico and the United States have impacted this performance.