The Mexican peso appreciated on Tuesday after a positive report on China’s manufacturing production, but it could score its worst quarter since 1995 if it stayed at current levelsAt a time when the world is paralyzed by the coronavirus and oil prices have plummeted.
The currency was also advancing after the Mexican Foreign Exchange Commission announced the day before the first dollar credit auction for up to $ 5 billion as part of a series of measures to provide liquidity to the local interbank market.
The local currency was trading at 23.7200 per dollar, with a gain of 0.29%, compared to 23.7880 of the reference price. Reuters on Monday. It aims to record a cumulative drop in the quarter of over 25%.
The government of Mexico declared a health emergency on Monday after reaching 1,094 infected and 28 deceased by coronavirus, a decision that includes deepening measures to prevent the spread of the outbreak in China at the end of last year and which has claimed the lives of some 37,500 people around the world.
“The measure is probably late compared to the response of other countries and, although the official number of reported cases is still relatively low, the health and economic cost for Mexico will probably be one of the highest on the planet.”, analysts at Monex Europe wrote.
Manufacturing activity in China expanded unexpectedly in March after contracting sharply to a record low, but The rapid global spread of the coronavirus is expected to keep businesses and the economy as a whole under strong pressure as external demand sinks.
The Mexican Stock Exchange is going through its worst moment in 25 years
The Mexican stock exchange was erratic on Tuesday as it was set to record its biggest quarterly decline since late 1995, amid fears over the rapid spread of the coronavirus and its impact on the world economy.
The benchmark local stock index S & P / BMV IPC rose 0.35% to 34,319.31 points. Moments earlier, in its first operations, it operated on negative ground.
The place is heading to record a cumulative drop in the quarter of over 21%.