▲ In an image taken from a video, a Ukrainian soldier appears dead after clashes in the east of the country.Photo App
Clara Zepeda
Newspaper La Jornada
Friday, February 25, 2022, p. 5
At the close of yesterday’s session and as a result of the conflict in Ukraine, risk aversion was carried by the foreign exchange markets, which with the strength of the dollar worldwide and the demand for US Treasury bonds, financial assets at times of high uncertainty, the only thing left was the fall of the currencies, mainly the emerging ones.
The Mexican peso registered a depreciation of 1.62 percent, to 20.5923 units per spot dollar, the biggest drop since March 2021.
The Bank of Mexico reported that the exchange rate operated yesterday between a maximum of 20.7910 units and a minimum of 20.5320, after it closed on Wednesday at 20.2646 pesos per spot dollar, but in the afternoon-night, when the Russia’s attack on Ukraine, the Mexican currency began to weaken.
In the broad basket of currencies, the Mexican peso ranked 11th among depreciated currencies. None of the currencies in the basket closed with an appreciation against the dollar, the Russian ruble being the most depreciated with 4.15 percent, Banco Base reported.
The increased demand for US Treasury bonds caused its yield rate to reach 1.9 percent.
American markets on the rise
Although Russia will not be kicked out of the Swift international payments system for now, because this would have negative economic consequences for the rest of Europe, the US and European sanctions on Russia stopped the bleeding in the American markets and closed mostly with profits. .
Thus, the Mexican Stock Exchange advanced 0.18 percent, to 51 thousand 454.05 points.
The worst part was carried by Europe and Russia. The Euro Stoxx 50 slumped 3.63 percent, led by the German DAX, which fell 3.96 percent, and the French CAC-40, which fell 3.83 percent.
