Bloomberg News

Goldman Sachs Recommends Selling Mexico Peso Versus Chile Peso

June 06, 2011

June 6 (Bloomberg) -- Goldman Sachs Group Inc. is recommending clients sell Mexico’s peso against the Chilean currency because Mexico will post a “subdued pace of growth” in the second quarter of the year.

Growth in the two Latin American countries is diverging as the slowing U.S. economy undermines Mexico’s industries, analysts led by Robin Brooks wrote in a note to clients today. In Chile, “favorable” credit growth and “strong” industrial and retail sales suggest robust “growth momentum,” the analysts wrote.

The Mexican currency may fall to 38 per Chilean peso from 39.99 today, according to Goldman Sachs.

--Editor: David Papadopoulos

To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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