Mexico City. By Miguel Angel Gutiérrez. (.) – The Mexican peso depreciated this morning in the exchange rate against the dollar, hit by fears that the rapid spread of the coronavirus could lead to a deep global recession, as well as a greater perception of risk on Latin America’s second economy and its compromised oil industry.

Also pressured by a collapse in international oil prices, the local currency was trading at 24.1970 for dollar, with a loss of 3.85%, compared to 23,3010 of the . reference price on Friday. Earlier it fell more than 5.2% to 24.55 units. This Monday at the beginning of the dayThe exchange rate was $ 23.84 units.

Fears grew in financial markets that the stagnation of economic activity could last for months because of the virus, which has infected 720,000 people and killed almost 34,000 around the world. Mexico has almost 1,000 infected.

Meanwhile, analysts said the downgrade by the S&P agency to Mexico’s credit rating and that of state oil company Pemex announced on Thursday continued to put pressure on the local currency, as it did at the end of last week.

“There is a greater perception of risk with respect to Mexico,” said Gabriela Siller, director of economic analysis at Banco Base. “The risk remains that another agency will cut Pemex’s rating, which could generate capital outflows from the country and additional pressures to the exchange rate rise,” he added.

Brent crude, meanwhile, fell to its lowest price in 18 years, while US crude briefly fell below $ 20 a barrel.

In the stock market, the Mexican stock market gained in an environment of opportunity purchases after recent sharp falls.

Following the behavior of its peers on Wall Street, the benchmark local stock index S & P / BMV IPC rose 0.95% to 34,119.80 points. The plaza fell 5.34% on Friday and scored its third consecutive weekly drop of 1.37%. In the year it accumulates a decrease of 21.6%.

In the debt market, the yield on the 10-year bond rose 23 basis points to 7.38%.

(Report by Miguel Angel Gutiérrez, edited by Ana Isabel Martínez)

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