Superpeso strengthens against the dollar after measures against banking crisis in the US

The Mexican currency in the international markets began to operate this Sunday around the 18.32 pesos per dollar wholesale at 6:34 p.m. local time, which means an appreciation of 0.86% or 16 cents compared to last Friday’s close, according to information from Bloomberg.

This, after the financial regulators of the United States took measures to shore up the financial sector with a new loan program after the bankruptcy of Silicon Valley Bank.

The futures of the main stock markets on Wall Street register an upward trend, while the dollar falls after, Janet Yellen, Secretary of the Treasury, said that her office would protect “all depositors” of the bank, whose disappearance on Friday marked the biggest event of its kind since 2008.

The Dollar Index, which compares the behavior of the US currency against the other six main currencies in the world, operates with a retracement of 0.26%, while the euro rises 0.50% against the greenback and the pound gains 0.54%.

read also Signature Bank, second US bank to fail this week, closes

The US government’s actions in response to the financial crisis will also include a program offered by the Federal Reserve with treasury funds.

The moves in the markets come after they took a beating last week, with the US stock benchmark suffering its worst week since September.

For this week that begins, the nervousness of investors is high before the inflation data is released in the neighboring country to the north, especially after the president of the Fed, Jerome Powell, recently emphasized that a move to a faster rate of adjustment would be based on “totality of data”.

The problems at the SVB Financial Group bank were largely caused by the fallout from higher US interest rates. For now, however, the assurances from US regulators on SVB are having the desired impact.

read also Silicon Valley Bank hits Mexico

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