The Mexican peso depreciated on Friday to levels not seen since the end of January, dragged down by global investor concerns about the impact of the conflict in Ukraine.
The domestic currency was trading at 20.8416 per dollar, with a loss of 1.01% against the Archyde.com reference price on Thursday, led by the performance of other emerging currencies.
“As the situation in Ukraine continues to deteriorate and sanctions are having knock-on effects around the world, risk appetite is reduced,” analysts at CI Bank said.
The nervousness of the markets has been exacerbated in recent hours after a fire was reported in a training building outside Europe’s largest nuclear plant during intense fighting between Russian and Ukrainian forces.
For the rest of the day, the peso is expected to oscillate in a range of 20.65 to 20.92 per dollar, according to currency specialists from Monex Grupo Financiero.
The main stock index S&P/BMV IPC, which includes the 35 most liquid companies in the Mexican market, fell 1.47% to 52,743.37 units.