The Mexican Peso stabilizes, and the Mexican Stock Exchange surpasses its pre-election level.

The spot exchange rate stands at 17.5429 pesos per dollar. Compared to yesterday’s rate of 17.5329 pesos.

Ignacio Teson•Thursday, June 6, 2024•1 min read

Investors are gradually digesting the potential implications of Morena’s victory in the presidential and congressional elections.

The Mexican Peso depreciates slightly in a session of erratic movements this Thursday, while the local stock market gains for the third consecutive day. Investors are gradually digesting Morena’s victory in the elections.

The spot exchange rate stands at 17.5429 pesos per dollar. Compared to yesterday’s rate of 17.5329 pesos, based on the official closing from the Bank of Mexico (Banxico), this movement represents a marginal decline of one cent or 0.06 percent.

Almost all the values within the reference index show gains. Notable advances include OMA (airport operator) rising by 6.56% to 171.91 pesos; BanRegio, increasing by 5.98% to 140.89 pesos; and the mining company Industrias Peñoles, up by 5.04% to 264.97 pesos.

USD/MXN

Losses within the index are few, with only four stocks declining. GCC fell by 0.79% to 184.03 pesos, Megacable decreased by 0.34% to 50.48 pesos, Gruma dropped by 0.04% to 350.83 pesos, and Vesta slipped by 0.01% to 58.54 pesos.

Both the peso and the stock market experienced their worst declines on Monday, following Morena’s election victory on Sunday, which unnerved investors due to the possibility of constitutional changes facilitated by their congressional majority.

After a calming message to the markets from Finance Minister Rogelio Ramírez de la O, the peso halted its decline. Although it is still down by 57.47 cents or 3.39% compared to Friday’s official closing rate of 16.9682 pesos, volatility has decreased.

Regarding the stock market, which began to recover on Tuesday thanks to bargain hunting, it has gained almost 7% in three days, surpassing the 55,179.24 points it closed with on Friday by around 0.60 percent.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.