Fear of the new Congress with a Morenista majority causes the Peso to lose 4%

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The dollar today was recovering after falling during the Asian session to its lowest level against the Euro, the British pound, and the Swiss franc since mid-March. This was due to a weakening U.S. economy, which reinforced arguments in favor of early interest rate cuts by the Federal Reserve.

Meanwhile, the Mexican peso, which had solidly gained ground against the dollar in recent months, lost 4 percent of its value yesterday, marking its worst day since the pandemic. Today, it continues to be weak following Claudia Sheinbaum’s overwhelming victory.

How much is the dollar worth today?

The Mexican peso extended its sharp losses from the previous day, briefly challenging the 18-dollar barrier. Investors are concerned that a qualified majority of the ruling party in the upcoming Congress may lead to significant constitutional reforms.

The domestic currency was trading at 17.94 units, with a 1.5 percent depreciation compared to yesterday’s reference price. Earlier, it weakened further to 18.20 pesos, a level not seen since October 2023.

According to Gabriela Siller, Director of Analysis at Banco Base, ‘The fear continues.’

Source: Milenio