Reuters.- The peso spun 7 sessions down on Friday and the Mexican Stock Exchange (BMV) culminated below the psychological barrier of 50,000 points, dragged by a wave of aversion to risk assets due to concerns that the new variant of the coronavirus, called Omicron, could slow the recovery of the global economy.
The currency fell during the session to its weakest level in 14 months, while the stock market closed at its lowest since July. Both assets posted steep weekly setbacks.
The peso was trading at 21.9410 per dollar near the end of the session, down 1.78% from 21.5575 in the Reuters reference price on Thursday. Previously, in international operations, especially in the Asian market, it fell 2.75% to 22.1510 units, its weakest level since September 30, 2020.
In transactions of the Citibanamex bank, the dollar is sold at 22,4600 pesos.
The local currency accumulates a loss in the year of more than 10% and registered a fall in the week of 5.36%, the highest since the one that ended on September 25 of last year.
Meanwhile, on the BMV, the local benchmark S & P / BMV IPC index fell 2.24% to 49,492.52 points, with a volume of 170.1 million securities traded. The square scores its third consecutive weekly drop, now 2.6%.
The new Omicron variant was detected in South Africa. The United States, the European Union and the United Kingdom are some of the countries that have tightened border controls, as scientists try to find out if the mutation is resistant to available vaccines.
Also read: New variant of Covid-19 worries scientists about its 30 mutations
“The most worrying thing about the new strain at the moment is how little we know about it, with early indications that it could be more problematic than Delta. The biggest fear is that it is resistant to vaccines, ”said Craig Erlam, market analyst at OANDA.
“Without a doubt, we will know more in the coming days and weeks, but for now, the fear of the unknown will weigh heavily on the weekend and could last until next week,” he added.
In the debt market, the 10-year bond yield fell nine basis points to 7.67%, while the 20-year rate fell 11 to 8.08%.
Follow us on Google News to keep you always informed