MEXICO – (Times Media Mexico) The Mexican peso yielded to the dollar’s strength since yesterday, Thursday, March 5, 2020 on data showing a higher unemployment rate, inflation and the prolonged spread of the coronavirus disease 2019 (COVID-19).

The Mexican peso depreciated to its weakest level in five months, amid a global wave of risk aversion unleashed by persistent fears of the economic impact of the new coronavirus, while the stock market fell to trade around 42,700 points. In the exchange rate, the peso closed the day at 19.86 pesos per dollar, according to data from Banco de Mexico.

Analysts said that bets that the region’s central banks could follow in the footsteps of the Fed, which this week made a surprise rate cut, were also influencing the behavior of the currency market.

The currency traded at 19.9532 per dollar, down 2.17% from 19.5289 units in its reference price on Wednesday. This is its worst level since the beginning of September.

“The risk of a global recession from the coronavirus has not disappeared and is evident as the number of confirmed infections outside China continues to grow,” Banco Base said in a report.

Analysts from the financial group Intercam noted that the peso has not appreciated even though the “spread” of rates has widened after the Fed’s cut. “The market has discounted that Banxico will also do something similar and will reduce the rate in the same proportion sooner or later”.

The benchmark S&P/BMV IPC stock index fell at 11.42 local time (1742 GMT) by 1.62% to 42,700.95 points, with a volume of 54 million securities traded.

In the debt market, the 10-year bond yield was stable at 6.33%, as was the 20-year rate, which traded at 6.67%.

Price of the dollar in banks in Mexico:
Regarding the exchange rate in the different banks in the country, as published by various financial institutions, the price of the dollar reaches its highest level on sale at $20.30 in Afirme, for $20.24 in BBVA Bancomer and $20.22 in Sotiabank.

The lowest price is $18.60 at Scotiabank, which bought it for $18.35 at the beginning of the day on Thursday.

The euro is quoted at $22.29 pesos, for $25.72 pesos of the pound sterling, in general average.

The Yucatan Times
Newsroom



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