Investing.com – The Mexican peso exceeded the range of 17.50 units per dollar this Monday, June 3, in reaction to the electoral results that mark Claudia Sheinbaum as the virtual winner in the concurrent elections, with an advantage for the coalition that supports that profile her as the winner of a large majority in Congress.
According to Investing.com’s real-time monitoring, the exchange rate shot up to a maximum of 17.72 Mexican pesos per dollar, from levels of 16.99 units, which represented a depreciation of around 4.4%.
At 07:20, Mexico City time, the Mexican peso was at 17.48 units, with a drop of 2.91 units per dollar.
Source: Investing.com
The Preliminary Electoral Results Program (PREP), with an advance of 77% of the tally sheets, gives the victory to the candidate of the Morena, Verde and PT (OTC:) parties, Claudia Sheinbaum, with 58.72% of the votes. votes, with a wide advantage over Xóchitl Gálvez, the candidate supported by the opposition, with 28.8% of the votes. In third place is Jorge Álvarez Máynez, from Movimiento Ciudadano, with 10.52%. The Morena party and its allies maintain the advantage in the federal elections to integrate the Senate and the Chamber of Deputies, outlining a majority position in Congress.
Although Sheinbaum’s victory in the presidency was expected and was already reflected in the value of the peso, the strong depreciation occurred when the legislative results showed a panorama that could affect governance and future policies, generating uncertainty in the market.
“Today, the peso depreciated strongly after knowing the local electoral results and their future implication on possible modifications to the Constitution, which attracted a feeling of international caution in a week where Mexico’s inflation figure will stand out,” they noted. Monex analysts.
“In Mexico, the question is whether the Morena party has done well enough to have a supermajority and try to implement non-market-friendly constitutional reform policies, according to the global head of markets at ING (AS:); Chris Turner, quoted -.
Although Sheinbaum’s victory was anticipated by the markets, the absolute control of Congress is part of the post-electoral risk scenarios for the markets, according to a recent analysis by Monex.
In January, the government of Andrés Manuel López Obrador proposed a series of constitutional changes that the Sheinbaum administration is expected to follow up on, including pension reform, changes in the system for electing judges and electoral councilors, as well as the elimination of autonomous organs.
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