Title: Peso Depreciates Following Global Strengthening of Dollar and Weak Chinese Economy
Subtitle: Mexican Stock Market Slightly Falls Amid Concerns of Global Recession
Date: [Insert Date]
The Mexican peso experienced a depreciation on Monday, dropping to levels not seen in over seven and a half years. However, it managed to stay below the 17 units per dollar mark due to a global strengthening of the dollar. This came after reports revealed that the Chinese economy had grown at a weaker rate in the second quarter, causing concerns among investors.
Trading at 16.8404 per dollar, the peso experienced a 0.62% loss compared to Reuters’ reference price on Friday. Its peak during the day was recorded at 16.7027 units, the highest level since December 2015. According to analysts at CI Banco, the Mexican peso successfully consolidated below the psychological level of 17. They expect this trend to continue in the coming days, with the Federal Reserve’s policy meeting later in the month playing a significant role.
In addition to the Chinese economic growth news, the day also saw the release of the Empire State manufacturing activity index by the Federal Reserve. The index, which measures manufacturing activity in the New York region, fell to 1.1 in July, surprising the market, which anticipated a figure of -4.3. These developments further impacted the performance of the peso.
Banco Base analysts predict that the peso will fluctuate within the range of 16.76 to 16.98 per dollar for the remainder of the trading session.
Meanwhile, the Mexican stock market experienced a slight decline in light of the news about the Chinese economy. The leading S&P/BMV IPC index, which tracks the most traded shares in the domestic market, fell marginally by 0.07% to 53,732.10 points.
Amidst the decline, media giant Grupo Televisa’s stocks took the hardest hit, experiencing a 1.80% decrease to 15.85 pesos. Following closely behind were the shares of airline Volaris, which saw a 1.59% drop to 22.35 pesos.
These developments underline the growing concerns about a global recession and highlight the interconnectedness of economies worldwide.
As the peso and stock market wrestle with external influences, experts and investors will closely monitor the Federal Reserve’s upcoming policy meeting to gauge its impact on the Mexican economy.
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Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Readers are advised to do their own research and make investment decisions based on their own judgment.