Because of the low anticipation for Biden’s visit to Israel, the peso and BMV fell

With U.S. President Joe Biden‘s visit, prospects of a defusing of the Middle East crisis cooled, and the peso continued its downward trend on Wednesday.

Arriving in Israel on Wednesday, Biden’s visit comes soon after a number of Palestinians died in a Gaza hospital, and in the wake of that attack, Iran demanded an oil embargo against Israel. Neither event seems to be moving the crisis closer to de-escalation.

«While some experts had hoped that Biden’s visit could help calm tempers, recent news reports suggest that even more escalations to the current tensions are perceived,» stated the business Monex in a client-facing analytical note.

For the second straight day, the peso was down 1.01% versus the Reuters reference price on Tuesday, trading at 18.1964 per dollar.