He Mexican peso reduced losses on Wednesdaywhile the stock market went upafter the Federal Reserve cut interest rates by half a percentage point, starting what is expected to be a constant flexibility of the monetary policy.
Analysts said that while The decision gives Banco de México room to continue reducing the cost of creditalso revived concerns about the health of the greatest economy of the world.
The Mexican currency closed at 19.28 pesos per dollarwith a one percent depreciation compared to Tuesday’s Reuters reference price. Before the Fed announcement, the peso was down around 1.5 percent.
“This moderate reaction could be justified in that being an ‘aggressive’ cut, it generates a certain fears about the health of the US economy“, CIBanco said in an analysis note. “In the course of the days, the currency could resume its positive trend and approach 19.0 again.”
The benchmark stock index rose 0.59 percent to 52,582.89 points, with an accumulated return of 3.2 percent in the last five sessions.
The titles of the media giant Grupo Televisa led the advance, with 7.37 percent more to 8.16 pesosfollowed by Banco del Bajio, which added 3.08 percent to 47.82 pesos.
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In the secondary debt market, The 10-year bond yield fell two basis points to 9.14 percent.while the 20-year rate rose one, to 9.47 percent.