Peso continues its bad streak and BMV posts biggest drop since October • Markets • Forbes México

The peso fell for a fifth day in a row and the Mexican stock market recorded its worst session in three months after the release of minutes from the Federal Reserve’s latest monetary policy meeting.

The minutes showed central bank officials appeared confident inflation was under control, with “risks to growth” easing and “too tight” monetary policy risking damage to the economy.

The peso was quoted at 17.0360 per dollar, down 0.13% from the Reuters benchmark price on Tuesday, although it weakened to 17.0990 ahead of the protocol, a level not seen since Dec. 21.

Over the past five days, the peso has lost 0.70%.

Read: Annual US inflation slowed below 3% in November

The stock market suffered its deepest fall since October

The benchmark S&P/BMV IPC stock index lost 2.20% to 55,726.64, its biggest daily fall since Oct. 5, although business was weak due to the holiday period.

The Mexican stock exchange also posted losses for five straight sessions, with a cumulative decline of 3.5%.

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

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

According to Reuters

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