Mexican peso up by 0.7% to hit two-week high


Emerging market shares rose on Friday, June 24th, as investors started to scale back bets on the extent of monetary policy tightening by major central banks, while Mexico’s peso extended gains to a sixth straight session.

A day after Mexico’s central bank hiked its benchmark interest rate by a record 75 basis points to 7.75%, the peso rose 0.7% to hit two-week highs, adding to weekly gains that would see it mark its best week in three months.

It has gained 2.8% over six sessions. “The global energy crisis helps Mexico as a producer,” said Juan Perez, director of trading at Monex USA.

Perez added that geopolitical changes in Latin America, which have caused some leftist candidates to come to power, should support the peso as it favors Mexico’s current leftist government.

Source: El Financiero

Mexico Daily Post