The Mexican peso was quoted in 25. 1170 per dollar at 14. 21 local time (20. 21 GMT), with a decline of 2. 85%
Televisa News SOURCE: reuters FROM: CDMX, México
Mexican banknotes and coins. Getty Images
The Mexican peso broke the barrier of the on Monday dollars , while the Bag Mexicana de Valores (BMV) fell to its worst level since 2011 by the crisis of the coronavirus (Covid – 19) .
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Analysts mentioned that a public consultation promoted by the Mexican Government and rejected by businessmen who denied the US company could also have pressed the local currency Constellation Brands continue building a brewery in the north of the country.
The Mexican peso was quoted at 25. 1170 per dollar at 14. 21 local time (20 . 21 GMT), with a decline of 2. 85% vs. Reuters benchmark price on Friday. In early operations, it fell to a new record low of 25. 2459 units.
“The feeling of risk has caused an extreme demand for liquidity in dollars and has not been mitigated by the latest measures by Banxico, which can be considered disappointing,” said Olivia Álvarez, currency market analyst at Monex Europe.
Mexico's central bank lowered its key interest rate on Friday by 50 basis points in a decision taken by majority and off-schedule, taking into account the risks derived from the coronavirus outbreak in the economy, markets and inflation. Banco de México has held auctions of currency hedges in the past few days.
Meanwhile, Gabriela Siller, director of analysis at Banco Base, mentioned that the Mexican peso is the most depreciated among the main crosses and that may be due to a higher perception of risk over Mexico.
“The greater perception of risk in Mexico may be due to the public consultation” on the brewer, Siller said.
The benchmark S & P / BMV IPC index, made up of the shares of 32 most liquid firms in the market, sank by 3. 81% to 32,964. 22 points, with a volume of 186. 6 million securities traded.
In the debt market, the yield of the bond at 10 years rose 53 base points to 7. 95%.
With Reuters information.