Background on the Mexican Peso and US Dollar
The Mexican peso has been on a downward trend for the third consecutive session, weakening alongside the strengthening US dollar. According to the weighted index, the US dollar has appreciated by 0.41%, reaching its highest level since June 23.
Factors Influencing the Peso’s Depreciation
The depreciation of the Mexican peso coincides with a 0.41% increase in the US dollar’s weighted index, which touched its highest point since June 23. This strengthening is attributed to the release of the US Consumer Price Index (CPI), which showed a monthly increase of 0.29%. This figure surpassed May’s rate of 0.08% and marked the highest monthly inflation since January.
Performance of Wall Street Indices
Meanwhile, the major indices on Wall Street concluded trading mixed on Tuesday. The Nasdaq reached new heights, driven by NVIDIA’s performance, while other indices declined amidst the assimilation of inflation figures.
- Dow Jones Industrial Average: Decreased by 0.98% to close at 44,023.29 points.
- S&P 500: Dropped by 0.40% to end at 6,243.76 points.
- Nasdaq Composite: Advanced by 0.18% to reach 20,677.80 units.
This marked the fourth session in five where the Nasdaq closed at a historical high since June 27. NVIDIA’s leadership in AI chips played a crucial role in the Nasdaq’s advancement, following its announcement to resume sales of its H20 semiconductor in China.
NVIDIA’s Impact on the Nasdaq
NVIDIA’s stock surged by 4.01% to $170.65, resulting in a market capitalization of $4.17 billion.
Bitcoin’s Performance
On the other hand, Bitcoin experienced a decline during Tuesday’s trading session. Following uncertainty in US cryptocurrency legislation after lawmakers rejected a procedural vote that would have allowed consideration of multiple crypto-related bills, Bitcoin’s price dropped by 1.62% to $117,551.7 per unit.
Key Questions and Answers
- What caused the Mexican peso to weaken? The depreciation of the Mexican peso is primarily due to the strengthening US dollar, which increased by 0.41% following a rise in the US Consumer Price Index.
- How did Wall Street indices perform? The Dow Jones Industrial Average and S&P 500 closed lower, while the Nasdaq Composite reached new heights, driven by NVIDIA’s strong performance.
- What factors influenced Bitcoin’s price drop? Uncertainty surrounding US cryptocurrency legislation led to Bitcoin’s 1.62% decline.
