2024-07-24 19:02:28
The possible resignation of Joe Biden for the Democratic nomination for president USAmoved the markets yesterday by giving the superweight a strong shake to once again exceed 18 units per dollarwhich had not happened for several days.
Since the early hours of Thursday, Barack Obamathe former US president had inflated the uncertainty by commenting to the newspaper The Washington Post the need for Biden reconsider moving forward with his candidacy.
The peso closed trading at 17.98 pesos per dollar, showing a depreciation of 1.62% or 28 cents, with an exchange rate touching a minimum of 17.6875, but reaching at various times maximums of up to 18.0725 pesos per dollar.
Political uncertainty of course generated a rebound above 18 pesos, Janneth Quiroz, director of financial analysis at Monex, told this newspaper, who said that attention is focused on whether Biden withdraws from the candidacy or not (something that had not been confirmed at the time of this edition).
“Somehow it is considered that what happened last weekend can give the imminent victory to Trump, at least that’s what they have cataloged several experts and that back and forth and the voice grows about the possibility that Biden get out of the race.”
Quiroz attributed the nervousness in the markets to Obama’s message, which puts pressure on the Democrats to look for a new option in the face of the marked advance of Donald Trump.
“Uncertainty always generates volatility and now it is what generated a depreciation of the Mexican peso. Looking ahead, at Monex we reviewed important technical levels where the currency could move up to 18.25 pesos per dollar.r over the weekend.”
The NYSE closed sharply lower yesterday as investors fled mega-caps for a second consecutive session as uncertainties in US politics began to weigh on the market.
The flagship index, the Dow Jones industrial index, led the losses, falling 1.29%.
For its part, the technological Nasdaq fell 0.70% and the S&P 500 -of the top 500 companies- fell 0.78%, according to provisional results.
The Mexican Stock Exchange (BMV) lost 1.31%, equivalent to 701.78 points, so its main indicator, the Price and Quotation Index (IPC), closed at 53,043 points.
During the day, 233 million shares were traded on the IPC, made up of the shares of the 35 largest companies on the stock market.
In this regard, Gabriela Siller Pagaza, director of financial analysis at Banco Base, projected that if nervousness increases over the weekend, the superpeso would reach 18.30 pesos per greenback. He commented that the exchange rate exceeded 18 pesos per dollar mainly due to the aversion that capital has to what could happen in the United States.
“It seems imminent that Biden will have to leave the Democratic Party nomination and it remains to be seen who might enter… Trump had been very calm until now waiting to see if they give him a strong enough opponent to compete with him.”
The financial analyst anticipated that our currency may lose strength in the following months and continue above 18 units per greenback if the reform continues. Power of attorney which will also make the local financial market nervous.
Biden also announced yesterday that he expanded his student loan forgiveness program by canceling the loans of another 35,000 Americans, just months before the elections in which he seeks re-election in the White House.
The latest measure, which amounts to $1.2 billion in student debt, brings the number of people who benefited from “debt relief actions” to 4.76 million, it said.
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2024-07-24 19:02:28