The peso and the Mexican Stock Exchange (BMV) advanced on Friday, but recorded a week of significant losses pressured by growing concerns that the Federal Reserve (Fed) will raise interest rates again this year.
The session was marked by a better-than-expected U.S. labor market report, contributing to the outlook that the world’s largest economy could endure further monetary tightening.
The domestic currency traded at 18.1580 units near the end of trading, up 0.48% against Thursday’s Reuters reference price, although it had previously weakened to 18.4820 units, a level not seen since March.
The peso reversed its initial losses in the face of a change in the dollar’s trend, which analysts and traders attributed to a technical correction in global markets.
“What happened today is a technical rebound,” said Jacobo Rodriguez, a financial specialist at Roga Capital. “What would you attribute this to? To opportunity buying, which does not mean that nervousness and volatility are being set aside,” he added.
The peso, one of the strongest against the dollar over the course of the year, was on track to end the week with a cumulative decline of 4.4%, its worst performance since November 2021.
The benchmark S&P/BMV IPC stock index rose 0.43% to 49,666.50 points, also erasing its initial losses. Even so, it fell by 2.4% during the week, its biggest decline since the end of June.
The change in trend also benefited the shares of the airport sector, which had started the day down again after suffering its worst drop in history on Thursday due to concerns about the impact on its business of an adjustment in the tariff scheme.
“In my opinion, the market touched an important support at 48,800 points. On the other hand, I believe that the overreaction in the airport groups was exaggerated,” said Jorge Placido, chief analyst at Apalache Análisis. “However, I still see weakness and would not rule out further corrections.”
Asur shares rose 5.85%, followed by GAP shares, which recovered 5.38%. OMA shares, meanwhile, fell by a marginal 0.16%, a strong rebound after having plunged 11% in the morning.
TYT Newsroom
