Mexican peso depreciates against global uncertainty

The Mexican has not been the only depreciated currency, "it is a phenomenon of risk aversion that has become widespread in emerging markets," Marco Arias, an analyst at Monex Financial Group, told Efe.

The peso depreciates "by continuing the nervousness associated with the trade war between China and the United States in the global financial markets," said Gabriella Sieller, of Base Bank.

Arias explained that this aversion has to do with situations such as that of Argentina, which marks the region's markets along with global uncertainty, which makes trade negotiations move markets and generate a climate of uncertainty that hits Forex, like the Mexican one.

In the Mexican market, there is a situation that could cause volatility and capital outflow, he said.

"We have in September the presentation of the economic package for 2020, which will give information on financial stability, which can reaffirm confidence or generate more noise, which could be reflected in the outflow of flows," he said.

For Base Bank analysts, the lack of an agreement between the United States and China, and the possibility of lengthening their negotiations "makes it likely that new tariffs will take effect in mid-December."

"The currencies of Latin American economies lost ground against the dollar, with the exception of the Argentine peso. The foregoing is due to a greater perception of regional risk, because on the weekend Argentina implemented capital controls to curb the erosion of its international reserves and stop the exchange crisis, "said Banco Base.

He explained that capital control in Argentina is seen as a measure to avoid instability in the short term, but the market interprets it as a desperate strategy.

"Likewise, there is no clarity about the economic policies that would be implemented by the Kirchner coalition in case of winning the elections at the end of October, which also creates nervousness in the markets," said the Base Bank.