The President of the United States, Donald Trump, announced this March 11 the suspension for 30 days of flights to Europe. The impact was the rebound of the dollar to 21.87 pesos, after a few days ago the Mexican currency was affected by the volatility of global markets.
The spread of the coronavirus has had major impacts on global economies. Banco de México closed at a price of 21.3710 per dollar, the worst closing in the last three years.
Around 20:00 hours the situation worsened. The currency was dangerously close to 22 pesos.RELATED
The reaction of the markets to the announcement generated that the dollar was sold at bank windows at 21.73 pesos and the purchase reached 20.88.
In Mexico, the rate of return on 10-year M bonds increased 43 basis points. In addition to the peso, the Brazilian Real depreciated 2.14% and the South African Rad a .22%.
The peso had accumulated a 10% retracement in the last seven sessions, and the stock market sank to levels not seen in nearly seven months after the World Health Organization (WHO) said the new coronavirus outbreak qualifies as a pandemic.
The disease, which has become a threat to the global economy, has already infected more than 119,100 people worldwide, with nearly 4,300 deaths, the vast majority in China, according to a Reuters count.
Over the course of the year, the stock market has plunged more than 11% and analysts said it still has room to continue to fall in the face of the global wave of risk aversion.
“The prices of most of the shares have oversold levels and are punished, there are still risks that they may continue to fall,” said Gerardo Copca, capital market specialist at consulting firm MetAnálisis.
Donald Trump’s announcement
Under pressure to take action on the coronavirus pandemic, US President Donald Trump announced Wednesday that all flights from Europe will be suspended for 30 days from Friday at midnight.
Trump, who said travel restrictions will not apply to the United Kingdom, did not provide a list of countries.
The president, who is seeking re-election in November elections, announced the move in a grim speech in the Oval Office, as he struggles to address the economic and health shock, and respond to criticism that he has downplayed the growing threat of the crisis. of the coronavirus.
Trump said he would take emergency measures to provide financial aid to workers who are sick, in isolation or who care for others due to the disease, after a new day of market crash.
In addition, it announced that it was instructing the Treasury Department to defer tax payments without interest or fines to some affected companies and individuals.
Oil, the futures of US and European stocks, the dollar and Asian stocks fell after Trump’s announcements. Weight was also one of those affected by these measures.
* With information from Reuters