Mexican peso operates erratically against dollar strength, stock market extends profit taking

Mexican peso operates erratically against dollar strength, stock market extends profit taking

 

MEXICO CITY, Jan 13 (Reuters) – The Mexican peso was trading up and down on Wednesday amid a strong dollar and as the market waited for more information on a new round of fiscal stimulus in the United States that could be approved early in Joe’s administration. Biden.

Meanwhile, the stock market’s leading index extended a profit-taking for the third day after last week posting its biggest weekly gain in seven months, and awaiting the release of corporate reports for the fourth quarter.

* The local currency was trading at 19.7616 per dollar, with a gain of 0.06% compared to the 19.7730 pesos of the Reuters reference price on Tuesday. Earlier, the peso depreciated to 19.8898 units.

 

* The dollar continued its recent rebound from the nearly three-year lows hit last week. The advance of the yield of US Treasuries, fueled by expectations of higher spending with the Biden government, has helped the recovery of the battered dollar in recent sessions.

 

* Meanwhile, mid-day, the benchmark S & P / BMV IPC stock index lost 0.59% to 45,682.39 points, with a volume of 67.4 million traded securities.

* A decline of 4.7% to 24.35 pesos in the shares of Alsea, operator of chains such as Domino’s and Starbucks, stood out amid a closure of restaurants in Mexico City and other regions of the country due to the coronavirus pandemic.

 

* “We continue to see normal the adjustment after the rise it had in the first week of this year, but it is important that it respect a support located around 45,750 points as part of a consolidation process, since in case of piercing that level it could fall up to 44,600, “said the Meta-Analysis consultancy in a report.

(Report by Miguel Angel Gutiérrez)

 


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