The local currency reached its worst level in more than a year, although losses were later reduced after the inflation data for May in the United States was known.
The Mexican peso will depreciate sharply against the dollar on Wednesday morning. The local currency fell to almost touch the level of 19 units, although losses were later reduced after the inflation data for May in the United States was known.
The spot exchange rate is at the level of 18.9067 units per dollar. Compared to a closing of 18.4879 units, according to data from the Bank of Mexico (Banxico), the movement meant a fall of 41.88 cents for the peso, equivalent to 2.27 percent.
The price of the dollar operates in an open range between a maximum of 18.9975 pesos and a minimum of 18.5507.
The Intercontinental Exchange dollar index (DXY), which measures the greenback against six strong reference currencies, fell 0.84% to 104.34 units.
The peso remains affected and extends its depreciation after Morena; The future president of Mexico, Claudia Sheinbaum, and the still president Andrés Manuel López Obrador have confirmed that they will promote a questioned judicial reform.
Although Sheinbaum Pardo has mentioned on several occasions that there will be a dialogue in various public spheres beforehand, her comments will not convince the market, which remains distrustful and takes the peso to a minimum of March 2023.
The peso slightly cuts its fall, thanks to the inflation data for May in the United States, which was lower than expected, in favor of those who expect a rate cut this year. Operators await the announcement of the Federal Reserve (Fed).
In detail, consumer prices in the United States remained unchanged in May, after an increase of 0.3% in April. According to a Reuters survey of analysts, the consensus was that the figure would rise 0.1% in the fifth month of the year.
The peso extended the trend of the previous session, caused by market nervousness about the next government. However, the possibility that the Fed will announce more than one cut this year supports its correction,” said the firm Monex in a note.
jose.rivera@eleconomista.mx