Mexico City — Following the significant losses experienced on Black Monday, the Mexican Stock Exchange (BMV) closed Tuesday’s trading session with a modest recovery, though it remains below the levels seen last Friday, August 2. The Mexican peso continues to grapple with the aftereffects, closing at 19.52 units against the US dollar on August 6.
The so-called “super peso” depreciated by 0.67% against the dollar on Tuesday, trading at 19.52 units per greenback, down from 19.39 in the Black Monday session, according to the Bank of Mexico (Banxico). Gabriela Siller, Director of Economic Analysis at Grupo Financiero BASE, commented on the situation, stating, “Everything has calmed down in the financial market after the terrible Monday. The collateral damage was the rise in the rate in Mexico, which is trading at around 19.50 pesos per dollar.”
Analysts note that volatility persists, with negative expectations due to US economic data, while other Latin American currencies have experienced gains. President Andrés Manuel López Obrador addressed the Mexican currency’s situation, downplaying the market instability as a temporary effect. In his morning press conference, he said, “We still have a margin of protection. It doesn’t affect us that much because our finances are very strong. Of course, we are neighbors of the United States, there is economic integration, and it affects the whole world, it affects Japan, it affects everywhere, but we can resist a little longer.”
The financial markets will be closely monitoring the upcoming monetary policy decision by Banxico’s Governing Board on Thursday, August 8. The Board will decide whether to cut interest rates or maintain the reference rate at 11%, a decision that could impact the peso-dollar exchange rate.
Mexican Stock Exchange Begins Recovery After Black Monday
On Tuesday, the Mexican Stock Exchange (BMV) advanced by 1.2% in its main indicator, reaching 52,399.63 units, marking a correction from the severe losses of Black Monday when global markets experienced a significant retreat. Gabriela Siller explained, “The capital market closed the session with gains among the main stock market indices at a global level. The gains were a correction for the strong losses observed in Monday’s session.” However, she noted that “no index managed to return to Friday’s levels.”
In the United States, the Dow Jones gained 0.76%, the Nasdaq Composite advanced 1.03%, and the S&P 500 rose 1.04%. In Mexico, the Price and Quotation Index (IPC), the main indicator of the BMV, “closed with a gain of 1.2%, breaking a three-session losing streak,” according to Siller. Noteworthy gains within the Mexican market included Walmex (+2.96%), Cemex (+3.01%), Bimbo (+3.81%), América Móvil (+1.6%), and Gruma (+4.22%).
Enrique Covarrubias, Director of Economic Analysis at Grupo Financiero Actinver, highlighted that during the session, “the CPI joined the positive trend of the United States markets, breaking a three-day downward streak, rising 1.2%.” Despite Tuesday’s recovery, the CPI has recorded a loss of -8.7% so far this year.
