Peso extends bad streak and BMV biggest drop since October • Markets • Forbes Mexico

The peso fell for a fifth straight day, while the Mexican stock market recorded its worst session in three months, following the release of minutes from the Federal Reserve’s most recent monetary policy meeting.

The minutes show that central bank officials are confident that inflation is under control, with “upside risks” receding and concerns that “excessively tight” monetary policy could hurt the economy.

The peso was quoted at 17.0360 per dollar on Tuesday, down 0.13% against the Reuters reference price, though it had weakened to 17.0990 units a minute earlier, a level not seen since Dec. 21.

The peso has depreciated 0.70% in the last five days.

Read: Annual inflation in US slows below 3% in November

The stock market recorded its biggest decline since October

The benchmark S&P/BMV IPC stock index fell 2.20% to 55,726.64 points, its biggest daily decline since Oct. 5, albeit with weaker business volume due to the holiday period.

The Mexican stock exchange also lost five consecutive sessions with a cumulative decline of 3.5%.

Shares of mining company Industrias Peñoles led the day’s decliners, down 5.36% to 234.88 pesos, followed by Orbia conglomerate, which fell 4.14% to 36.13 pesos.

In the debt market, the 10-year bond yield rose four basis points to 9.06%, while the 20-year yield rose one basis point to 9.17%.

With information from Reuters

Get inspired, discover and share. Follow us and find what you’re looking for on our Instagram!

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button