Mexican peso falls on economic worries

The Mexican peso depreciated against the dollar, pressured by data that showed activity in Latin America’s second-largest economy slowed in May and in the run-up to the statement on U.S. interest rates, while the stock market gained ground.
 
Mexico’s economic activity was virtually unchanged in May compared with the previous month, with output sharply reduced, as official data showed early on Tuesday, which was below expectations and discouraged the foreign exchange market.
 
The Mexican peso was trading at 16.92 per dollar. Meanwhile, the dollar index was trading flat or marginally higher in the global market.
 
 
“The result disappointed as it was well below the IOAE projection of a monthly advance of 0.4%,” Monex Financial Group said in a note to clients.
 
The currency market was also moving cautiously ahead of Wednesday’s statement from the U.S. Federal Reserve, which is expected to raise the benchmark interest rate by another 25 basis points.
 
 
But in the stock market, the benchmark S&P/BMV IPC index rose 0.78% to 53,936.57 points in an environment of investor confidence and in the final week of quarterly results reports. In the afternoon, the figures of the Bimbo BIMBOA bakery group are expected. MX.
 
The shares of the mining company Grupo Mexico led the trend and gained 3.93% to 89.12 pesos, followed by the shares of the tortilla producer Gruma, which advanced 2.33% to 296.65 pesos.
 
In the debt market, the yield on the 10-year note rose one basis point to 8.84%, while the 20-year rate was stable at 8.92%.