The peso was trading at 20.4406 per dollar near the end of business, depreciating 0.97% against Wednesday’s Reuters benchmark price, when it gained 1.62%. In the four previous days it sank 5.21%.
“Current selling seems to stem from fears that the Fed will cause a recession, as the authority would be willing to accept a decline in economic conditions in its fight against rising price pressure,” local firm CI said. Bank in a report.
The benchmark S&P/BMV IPC Mexico stock index fell 1.63% to 47,558.51 points, its lowest closing level since mid-April last year, after rising 0.37% the day before and accumulating a drop of 3.94% in the five sessions previous.
Airline stocks led losses in the local market for a cocktail of reasons that analysts say ranged from rising fuel prices to concerns about the impact of inflation on travel, clouding the outlook for the industry.
In its eighth day of losses, the shares of the low-cost airline Volaris VOLARA.MX sank 16.91% to 19.16 pesos, its worst session since March 2020, while those of its rival Grupo Aeroméxico AEROMEX.MX, which operates the largest airline in the country, subtracted 20.58% to 173 pesos, spinning four days in decline.
Both companies told the stock market that they were unaware of the causes behind the movement.
In the debt market, the yield on the 10-year bond MX10YT=RR fell two basis points to 9.21%, while the 20-year rate MX20YT=RR rose nine to 9.23%.