Mexican Peso Dips As Trump’S Potential Victory Stirs Market Concerns
Date
10/17/2024 12:15:34 PM
(MENAFN- The Rio Times) The Mexican peso has weakened against the US dollar for the fourth consecutive day. This Thursday morning, the local currency hovers near the 20 pesos per dollar mark.
Traders are closely watching US economic data and its potential impact on the peso's value. The current exchange rate stands at 19.9611 pesos per dollar.
This represents a slight decrease from yesterday's official closing rate of 19.9406, as reported by the bank of Mexico (Banxico ). The peso has lost 2.05 cents, equivalent to a 0.10 percent decline.
Throughout the day, the dollar's price has fluctuated between a high of 20.0310 and a low of 19.8825 pesos. The Dollar Index (DXY), which measures the greenback against six major currencies, has risen by 0.16% to 103.75 units.
Earlier, the peso reached its lowest point in over a month. This downward trend reflects investors' growing concern about Donald Trump's potential victory in the upcoming US elections.
The Peso and Market Reactions
The market seems to be pricing in this possibility. Monex Grupo Financiero analysts noted that the peso has broken the 20-unit resistance level.
They attribute this weakness to traders reassessing Mexico's economic outlook in light of a possible Trump win. US economic indicators have also influenced the peso's performance.
Retail sales in the United States surpassed expectations in September. Additionally, new unemployment claims unexpectedly dropped to 241,000 last week.
Ve por Más, a financial services firm, explained that these retail sales figures have eased fears of an economic slowdown in the US.
However, they also suggest that the Federal Reserve may have limited room for action in the near future. The peso's recent decline highlights the interconnectedness of global markets.
It also underscores how political events in one country can significantly impact another's currency. As the US election approaches, the peso may continue to face pressure from market uncertainty.
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