The local currency was hit by a wave of risk aversion stemming from concerns about the Middle East, amid a day marked by fresh comments from Jerome Powell.

The Mexican peso closed with significant losses in Tuesday’s session. The local currency was hit by a wave of risk aversion related to concerns about the Middle East, amidst a day marked by fresh comments from Jerome Powell.

The exchange rate ended trading at 17.0465 units per dollar. Compared to yesterday’s rate of 16.7246 units, according to data from the Bank of Mexico (Banxico), this represented a loss of 32.19 cents for the currency, equivalent to 1.93 percent.

The dollar price traded in an open range, reaching a high of 17.0930 pesos and a low of 16.7056 pesos. The Intercontinental Exchange’s Dollar Index (DXY), which measures the greenback against six benchmark currencies, was up 0.16% at 106.38 points. Markets remain attentive to a potential escalation in the Middle East and continue to speculate that interest rates in the United States will remain high for longer.

Additionally, Federal Reserve (Fed) Chairman Jerome Powell stated at a public event that it’s likely necessary to maintain interest rates for a longer period, as recent data showing little progress hasn’t instilled confidence.

At its lowest point during the session, the peso reached a level not seen since late February. The session erased the gains it had made for the year, and compared to a rate of 16.9666 units at the close of December, the currency is now down 0.47 percent.

The Mexican peso has accumulated a decline of over 4% in six days. This negative streak began, it’s worth mentioning, just after reaching a level of 16.2559 pesos a week ago, its best level since August 2015 (almost nine years).