The price of dollar in Mexico It is trading lower in the early hours of Monday amid concerns about the health of the financial system as the flight from risk propped up the dollar and put pressure on bond yields.
The exchange rate is listed at 18,415 pesos per dollar, according to data from the Bloomberg agency.
According to the Global Indicator of Economic Activity (IGAE) prepared by the National Institute of Statistics and Geography (Inegi), the mexican economy it started the year on the right foot and posted growth of 0.56% per month in January, its biggest increase in four months.
The data was higher than the expectation of the institute itself, which forecast a growth of 0.43% and for January an advance of 0.29% is expected.
World stock markets plummeted last Friday due to the sale of bank shares due to concerns about the health of the financial system. The flight from risk propped up the dollar and put pressure on bond yields.
According to Reuters Agency, market sentiment was affected by the sell-off in Deutsche Bank shares, which were down 10.6%, as its credit default swaps, which reflect the cost of insuring debt against default risk, they shot up to their highest level in more than four years.
“The growing sense of unease around the global banking system is increasing volatility in stock markets around the world,” said Nigel Green of Vere Group financial advisory. “As concerns about bank stability persist, we expect further and heightened volatility in the markets.”
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