### Mexican Peso Depreciates Amid U.S. Recession Fears, Exceeds 20.16 Per Dollar
On August 5, 2024, the Mexican peso depreciated to 19.64 pesos per U.S. dollar, marking approximately a 2.51 percent decline. This depreciation arises as concerns about a potential recession in the United States grow, according to Gabriela Siller Pagaza, Director of Analysis at Banco Base. These fears are fueled by the rising unemployment rate in the U.S., which has increased to 4.3 percent.
The evening of Sunday, August 4, 2024, saw the U.S. dollar surpass 20.16 pesos, representing a 4.6 percent decline—levels not seen since October 2022.
During overnight trading in Asian and European markets, the exchange rate fluctuated between a low of 19.11 and a high of 20.21 pesos per dollar, levels unseen since September 2022.
Simultaneously, the dollar weakened against a basket of the six major international currencies, with its weighted index (DXY) dropping by 0.89 percent, operating at 102.070 units.
Asian stock markets were also volatile, as the Bank of Japan adopted a restrictive stance that hints at further interest rate hikes, which strengthened the yen and negatively impacted the peso.
Consequently, Japan’s Nikkei 225 index fell by 13.1 percent, while Korea’s Kospi lost 8.5 percent, prompting temporary suspensions in trading. Taiwan’s Weighted index decreased by 8.4 percent, Singapore’s Strait Times fell by 4.4 percent, and Malaysia’s FTSE Bursa slumped by 2.8 percent.