The peso appreciates 1% against the dollar after the elections this Sunday, June 6, whose projections indicated that the Morena party – to which President Andrés Manuel López Obrador belongs – maintained a majority in the Chamber of Deputies, but the The number of posts is insufficient to carry out radical changes.
At 9 a.m., the currency appreciated 0.95% to 19.77. Earlier it rose to 17.7429 pesos per dollar, its best level since May 18.
The markets have remained vigilant to see if López Obrador keeps or extends the majority of his party in Congress – which will allow him to push for more constitutional reforms – or if he loses it.
According to the quick count of the National Electoral Institute (INE), Morena will have fewer deputies in the next Legislature. In terms of voting, its range will be from 34.9% to 35.8%, Lorenzo Córdova, president of the INE, detailed Sunday night.
“The preliminary result of the quick count suggests that the president will have a little more opposition if he seeks more constitutional reforms. It should be remembered that, in recent months, some bills have been proposed and / or approved that have generated uncertainty in the Mexican markets and that could scare away investment, which had been causing some episodes of upward pressure for the exchange rate. ”Said Gabriela Siller, director of Financial Economic Analysis at Banco Base.
The election result was positive for institutional stability, Gustavo Medeiros, deputy director of analysis at Ashmore Group, a fund manager focused on emerging markets, told Reuters.
“Not losing by a large magnitude also means that you will not have to make a 180 degree turn in your strategy, so the commitment to strict fiscal policies should be maintained, something positive from a solvency perspective and that investors in Mexico appreciate from that (López Obrador) took office, “he added.
So far this year, the peso remains stable, it has only appreciated around 0.2%.
For its part, the Mexican Stock Exchange also had a positive reaction and its main index the IPC S & P / BMV opens this Monday with a rise of 1.36% to 51,173.24 points. An advance of 4.22% to 17.06 pesos of Cemex shares stands out.
The Mexican Stock Exchange has had a positive performance in recent months, in May its main index accumulated a 6% advance and spun its fourth monthly profit. So far this year it has risen 17% and is close to its historical maximum of 51,713.38 points registered on July 25, 2017.
With information from Reuters.
