The fall in oil prices over the week dominated Mexican financial markets

Summary

The peso accumulated a further depreciation of 2.8% over the week, 1.5% of it on Thursday alone, the weakest emerging currency that day. The aggregate loss since November has been 7.9%, which rises to 9.0% from October onwards. Over both periods, the peso is the third worst performer of the emerging currencies, only better than the Colombian peso and the rouble. The trend this week was boosted by new falls in the oil price. Mexican mixed crude fell by more than 8% over the week, coming in at levels below USD55/bbl. As with last week, Mexican assets showed a negative differential. On the stock market, the CPI chalked up a weekly fall of 5.5%, against a less intense reversal by the S&P 500 (-1.9%). On the government debt market, 10-year M-bono yields rose by 9bp over the week, which contrasts with a fall of 14bp on the 10-year T-bond yield

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