Mexican Peso Weakens Against Dollar Amid Global Risk Aversion
mexican Peso Dips as Global Risk Aversion Rises
Mexico City – The Mexican peso weakened against the US dollar on Monday, December 2nd, as global risk aversion spiked following threats from former US President Donald Trump against the BRICS nations’ efforts to create a new currency.
According to data from the Bank of Mexico (Banxico), the exchange rate closed at 20.3926 pesos per US dollar, marking a 0.15% depreciation or a 3.15 centavo drop compared to Friday’s closing figure. During the trading session, the peso fluctuated between a high of 20.6024 and a low of 20.3685.
This depreciation comes amidst a strengthening US dollar. The US dollar index (DXY), which measures the greenback’s strength against a basket of six developed-country currencies, rose 0.67% to 106.45.Similarly,the bloomberg Dollar Spot Index (BBDXY) climbed 0.42% to 1,280.31 units.
In commercial banks, the US dollar was selling for around 20.92 pesos, according to data from Citibanamex.
Global Currency Impact
The Mexican peso wasn’t alone in its decline. Several other currencies also weakened against the US dollar. The Brazilian real led the pack wiht a 1.71% depreciation, followed by the Hungarian forint and Bulgarian lev, both down 0.85%. the romanian leu shed 0.83%, the Czech koruna lost 0.71%, and the Colombian peso dipped 0.60%. Other notable depreciations included the Thai baht (0.55%), South African rand (0.54%), and South Korean won (0.49%).Bond Market Trends
In the bond market, the yield on Mexico’s 10-year Mbono stood at 9.90%, while the yield on the US 10-year Treasury note reached 4.22%.
Peso Takes a Hit as Global Risk Aversion Spikes
Mexico City – Fear gripped global markets on Monday,December 2nd,sending investors scrambling for safe havens like the US dollar and causing the mexican peso to weaken. this risk aversion was triggered by threats from former US President Donald Trump aimed at the BRICS nations’ efforts to create a new currency.
The peso closed at 20.3926 per US dollar,a 0.15% depreciation compared to Friday’s close, according to data from the Bank of Mexico (Banxico). This dip reflects the broader trend of a strengthening US dollar, as evidenced by the US dollar index (DXY) rising 0.67% to 106.45 and the Bloomberg Dollar Spot Index (BBDXY) climbing 0.42% to 1,280.31 units.
The Mexican peso was not alone in its decline. Several other currencies also faltered against the US dollar, including the Brazilian real (down 1.71%), Hungarian forint and Bulgarian lev (both down 0.85%), Romanian leu (down 0.83%),Czech koruna (down 0.71%), and Colombian peso (down 0.60%).
The ripple effect was also felt in the bond market, with the yield on Mexico’s 10-year Mbono standing at 9.90%, while the yield on the US 10-year Treasury note reached 4.22%.