He Mexican peso intensified its fall against the dollar and last night it was trading at its highest level since late 2022, on par with the Asian stock markets collapsed at the beginning of the week, as well as the cryptocurrenciesbefore the concerns about the economic situation in the United States and the Bank of Japan’s restrictive stancewhich targets older people rate hikes that will continue to strengthen the and in.
The geopolitical tensions in the Middle East They also mined the risk appetite by the investorsgiven that Israel prepares for a possible Iran attack and of regional militias.
In accordance with Bloomberg, the weight It was quoted last night at 19.81 units, with a depreciation of 3.3 percent, but during the day it reached 20.24 units.
Gabriela Siller, director of analysis at Banco Base, He pointed out that the Mexican currency depreciated sharply, given the possibility that the United States falls into recession In the short term, the expectation that the Bank of Japan keep uploading your interest rate and the risk aversion about Mexico. “The Japanese Yen is dragging the weight down,” he noted on his X account.
“With inflation on track to return to the target of Open Market Committeeof 2.0 percent and a perceptible weakening in the working market which increases the risk of recessionnow we hope that The Fed reduce your target range for the federal funds rate by 50 basis points at the meeting on September 18,” he said. Hay H. Bryson, chief economist at Wells Fargo.
He and in and the yuan rose on Monday, while the fall of the Mexican peso spread as traders continued to unwind trades carry trade from emerging markets.
He weight fell as much as 2 percent against the U.S. currency in Asian trading, extending its loss to a third straight day.
The fall occurred when the yen rose more than 1 percent, while the Chinese yuan strengthened 0.7 percent, two currencies used to fund the popular trading strategy.
“Operators have begun to worry about the risk of recession in the United States After the unemployment rate rose to 4.3 percent in the latest data,” according to Alvin Tan, head of Asian currency strategy at the Royal Bank of Canada in Singapore. That is a bad environment for the carry tradersthe specialist added.
Stock market crash
With the feeling of a ‘Black Monday’andThe Nikkei 225 indexof the Japan Stock Exchangeplummeted 13.1 percent, with the largest drop in points in history, while the Kospi from Korea lost 8.5 percent, both suspended operations for a few minutes; Weighted from Taiwan He did so by 8.4 percent, Strait Times of Singapore fell 4.4 fall and the FTSE Bursathe Malaysian stock market fell 2.8 percent.
The futures of Wall Street indices They were also operating at a loss, which points to a negative day, mainly in the technology stocks. The Nasdaq futures fell 2.9 percent, those of Dow Jones 0.8 percent, and those of S&P 0.7 percent.
“Basically, we are seeing massive deleveraging as the investors They sell assets to finance their losses,” he said. Kyle Rodda, senior market analyst at Capital.Com. “There is a lot of panic selling now, which is what causes these non-linear reactions in the asset prices to fairly simple fundamental dynamics.”
Bitcoin, in a nosedive
The cryptocurrencies They also reported heavy losses, and in the case of bitcoinwere 10.6 percent, while ethereum fell 18.8 percent, cardano 15.1 and solana 11.3 percent.
The digital assets They are partly victims of the divestment of carry trade of the yenas speculators adjust to the interest rates highest in Japanaccording to Hayden Hughes, chief investment officer at cryptocurrencies from the Evergreen Growth family office.
