The dollar closed today, October 31, 2022, at 20.31 pesos for sale in banks in Mexico City, such as Citibanamex, while buying at a price of 19.19 pesos.
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The Mexican peso fell on Monday while stocks advanced to levels not seen since June, after an erratic session on the eve of an expected two-day meeting of the Federal Reserve, which could herald a pause in the pace of monetary tightening.
The session was marked by the disclosure of weak figures for manufacturing activity in China in October, in the face of a decline in global demand and strict internal restrictions due to the pandemic.
The Mexican coin ended at 19.7940 per dollar, down slightly 0.04% against Friday’s Reuters benchmark price, after two days of gains that took it to levels not seen since mid-September.
“An additional depreciation of the Mexican peso cannot be ruled out in the coming days, since the current levels (below 20 pesos per dollar) continue to be very attractive for the purchase of dollars,” said the firm Banco Base, in a note of analysis.
“In addition, the market is likely to continue to speculate in favor of the dollar in the first half of the week, in anticipation of the Fed’s announcement,” he added. In Mexico, the central bank will announce its monetary policy decision on November 10.
The local currency ended October with an appreciation of 1.7%, its best month since May.
The benchmark S&P/BMV IPC stock index rose 1.70% to 49,922.30 points, with a monthly return of 11.9%, its best performance since November 2020.
The titles of the mining company Industrias Peñoles led the advance of the session, with 6.94% more to 224.76 pesos, followed by those of Operadora de Sites Mexicanos, which added 5.69% to 21.56 pesos.
In the debt market, the primary yields of the Treasury Certificates (Cetes) registered mixed changes in the primary auction of government securities. The 28-day benchmark Cete rate was placed at 9.40%, 40 basis points below its previous auction.
“This instrument -28-day Cete- continued to adjust moderately upwards to get closer to the expected rise in interest rates by the Bank of Mexico,” said Intercam Banco.
With information from Reuters