This Monday, the Mexican peso depreciates above 20 units per dollar due to increased global risk aversion. According to Bloomberg data at 9:50 AM, the depreciation is 0.76%, placing the exchange rate at 20.02 units, 14 cents more than the closing on Friday, October 18.
CIBanco analysts attribute these levels to global uncertainties, such as the conflict in the Middle East and the U.S. presidential elections. They warn that the Mexican peso will be subject to speculation about the Fed's future interest rate measures and third-quarter corporate results.
In bank windows, the dollar is quoted at 20.51 pesos for sale and 19.41 for purchase, according to Citibanamex. The dollar index (dxy) increases by 0.43% to 103.93 points, while the Bloomberg dollar index (bbdxy) adds 0.42% to reach 1,257.10 units.
The yield on the 10-year bond in the U.S. stands at 0.15% while in Mexico it remains at 9.88%. Among the currencies that gain value against the dollar are the Israeli shekel, the Russian ruble, the South Korean won, the Hungarian forint, and the Polish zloty.
