The Mexican peso appreciated 0.54 percent against the US dollar on Monday 26 October, with the exchange rate at 17.55 units, according to Banco de México figures. That level was 11 centavos lower than the close recorded on Friday 23 October.
Sao Paulo halts trading
The Bolsa de Sao Paulo triggered its circuit breaker for at least half an hour on Monday after opening with a drop of more than 10 percent. The sharp opening move followed Lula da Silva’s re-election.
Trading in Sao Paulo remained suspended for the minimum half-hour window mandated by the circuit-breaker mechanism. The peso’s gain in Mexico came on the same day, even as Brazilian markets absorbed the political shock.
Fed decision awaited
Investors were also looking ahead to the Federal Reserve’s next monetary policy decision. Fed chair Kevin Warsh left open whether an interest rate increase would come this week, offering no firm signal to currency traders positioning ahead of the announcement.
Source: Bank of Mexico
