The Mexican peso closed the week with an appreciation of 2.46% or 46.5 centstrading around 18.44 pesos per dollar.
This profit was given despite the persistence of turbulence in the markets due to uncertainty in the banking systemand that last Wednesday the United States Federal Reserve (Fed) raised interest rates again by about 25 basis points.
Gabriela Siller, director of economic analysis at Banco Base, commented that the appreciation of the peso is mainly due to the weakening of the US dollarwhich lost 0.76% according to the weighted index, losing for the second consecutive week and accumulating a decline of 1.31% in that period.
“During the week, the dollar weakened on the expectation that the Federal Reserve will be cautious to make another increase in interest rates. On Wednesday the 22nd, the Fed raised the rate by 25 basis points to a range between 4.75 and 5.00%, but the median of the FOMC’s projections for the interest rate at the end of the year remained unchanged at 5.1%, sending the signal that the Fed is close to concluding the cycle of rate increases,” he added in a comment.
In the financial market, nervousness continues about the stability of the financial system in the United States and Europe. In the United States, Treasury Secretary Janet Yellen mentioned during the week that they are prepared to take “additional measures” in case bank deposits are at risk, sending the message that a move cannot be ruled out. financial crisis.
Wall Street closed the week with increases of more than 1% in its main indicators, despite concerns about the banking sector and the echoes of the financial crisis, focusing more on the messages and actions of US financial officials and monetary policy.
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The Dow Jones Industrials, which fell slightly last week, accumulates this time a rise of 1.18%; while the selective S&P 500 and the Nasdaq index chain gains of 1.39% and 1.66%, respectively.
The market has focused on the rise in interest rates of 25 points announced on Wednesday by the Federal Reserve and in the expectations of its president, Jerome Powell, of tighter credit conditions that are expected to weigh on the economy and inflation.
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