The Mexican peso closed the first week of October with a loss of 4.26% or 74.3 cents, trading around 18.16 pesos per dollarbeing its largest weekly depreciation since November 26, 2021, when the current governor of the Bank of Mexico (Banxico) was nominated from the presidency, which initially caused nervousness and uncertainty about the country’s monetary policy.
Gabriela Siller, director of economic analysis at Banco Base, indicated that this week’s depreciation is due to the following factors:
- Speculation that the Federal Reserve will raise the interest rate again before the end of the year, with an announcement on November 1 or December 13. Several positive indicators in the United States fueled this speculation. August job openings rose by 690,000 to 9.61 billion, their best level since May. Finally, the non-agricultural payroll for September showed the creation of 336 thousand job positions.
- In the raw materials market, a drop in energy prices was observed, with WTI losing 9.10% and trading at $82.78 per barrel, touching a minimum of $81.50, its worst level since August 31 of this year. The drop in the price of oil was due to the strengthening of the dollar and the increase in interest rates.
- Risk aversion in Mexico due to the news of changes from the government to the fee structure that airports charge for services. Although the details are expected to be released next week, there is speculation that the Single Airport Rate will be reduced, which will affect the cash flows of airport groups.
The most depreciated currencies were from emerging economies or raw material producing countries: the Colombian peso lost 6.26%, the Mexican peso 4.26%, the Russian ruble 3.32%, the Chilean peso with 2.96%, the Brazilian real with 2.17%, the crown Norway with 2.02% and the South African rand with 1.96%.
On the other hand, to the Mexican Stock Exchange (BMV) This Friday it registered an advance of 0.43% in its main indicator, reaching 49,666.5 unitsa percentage that did not help it avoid a sharp drop of 2.38% to record losses in 9 of the last 10 weeks.
In the United States, the Dow Jones closed with a weekly loss of 0.3%, tying 3 consecutive weeks of losses; The NASDAQ Composite closed with a gain of 1.6% for the week and the S&P 500 advanced 0.48% to end a streak of 4 consecutive weeks of losses.
Meanwhile, in Mexico, The Price and Quotation Index (IPC), the main indicator of the BMV, closed with a cumulative loss of 2.38% for the weekthe deepest since June 23 and registers losses in 9 of the last 10 weeks.
MORE NEWS:
High level Team of young journalists whose objective is to explain the most relevant business, economic and financial news. We are passionate about telling stories and believe in citizen and service journalism.