Mexican peso and stock market post losses this week amid inflation concerns

MEXICO CITY, Nov 12 (Reuters) – The Mexican peso and the stock market posted accumulated losses for the week on Friday, as global concerns prevailed over persistent inflationary pressures that would lead the Federal Reserve to raise interest rates in the largest economy world.

* The local currency was trading at 20.5195 per dollar, up 0.55% compared to 20.6328 in the Reuters reference price on Thursday. During international operations, the peso depreciated to 20,7173 units.

* Meanwhile, Mexico’s benchmark stock index, the S & P / BMV IPC, lost 0.53% to 51,432.54 points with a volume of 184.1 million securities traded. The square has also operated on positive ground.

* The weekly weight loss was just over 1% and that of the stock market was 1.05%.

* Data released this week showed the highest inflation in the United States in three decades and led investors to bet on a Fed rate hike in mid-2022.

* “The main concern remains inflation, in light of Federal Reserve Chairman Jerome Powell’s comments earlier this month that the bank will not hesitate to act on rates’ if warranted,” the group said. financial Go for More in a report.

* At the local level, Banco de México raised its benchmark interest rate by 25 basis points (bp) on Thursday for the fourth time in a row to 5%, and raised its expectations for inflation at the end of this year.

* “Expectations are confirmed that Banxico will continue to raise the interest rate, probably also during 2022, and that in some way has given a boost to the peso,” said Jesús López, an analyst at the financial group BASE, regarding the behavior shown for the Mexican currency on Friday.

* In the debt market, the 10-year bond yield rose 15 basis points to 7.37%, equal to the 20-year rate that operated at 7.74%.

(Report by Miguel Angel Gutiérrez)

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