the mexican peso closed the Tuesday session with an appreciation of 1.12% or 20.8 centstrading around 18.63 pesos per dollar, thanks to the decrease in risk aversion in the global financial market, after the purchase of the troubled bank was finalized over the weekend Credit Suisse by its rival UBS, with support from the Swiss government.
“During the session, risk aversion also eased after Treasury Secretary Janet Yellen told the American Bankers Association that Treasury Department intervention was necessary to protect the US banking system.” recalled Siller Pagaza in a report.
The specialist added that the appreciation of the peso is also a consequence of the weakness of the dollar, given speculation that the US Federal Reserve (Fed) will show less restrictive language in its monetary policy announcement scheduled for tomorrow at 12:00 p.m. Central Mexico. In addition to the tone of the statement, the comments by Jerome Powell and the FOMC’s adjustment of interest rate expectations will be key for the markets.
The most appreciated currencies during the day were the Hungarian forint with 2.13%, the Czech crown with 1.33%, the Mexican peso with 1.12%, the Norwegian crown with 0.95% and the Polish zloty with 0.83%.
On the other hand, Wall Street closed this Tuesday in the green and the Dow Jones Industrials, its main indicator, rose 0.98%, thanks to investor optimism about the banking systembefore the decision on the interest rate that the Federal Reserve (Fed) can take on Wednesday.
At the close of business, the Dow Jones added 316.02 pointsto 32,560.60 and the selective S&P 500 gained 1.30%, or 51.30 integers, to 4,002.87.
For its part, the Nasdaq market composite index, in which the main technology companies are listed, rose 1.58% or 187.57 units, to 11,860.11.
It marks the first time that both the S&P 500 and the Dow have closed in the green for the second day in a row since Silicon Valley Bank collapsed less than two weeks ago.
Shares of large US banks such as JPMorgan Chase (2.69%) posted strong gains on Tuesday.
First Republic shares rose 29.56%, after losing nearly half their value on Monday. Western Alliance and PacWest, two other midsize banks that have come under pressure, were up 14.69% and 18.68%, respectively.
With information from EFE.
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