Feb. 1 (Bloomberg) -- Mexico’s peso rose the most in four weeks after manufacturing growth quickened in the U.S., boosting the outlook for the Latin American country’s exports.
The peso gained 1.2 percent to 12.8923 per U.S. dollar at the close in Mexico City, from 13.0456 yesterday. It increased 2 percent on Jan. 3. The currency has jumped 8.1 percent this year.
Manufacturing in the U.S. grew in January at the fastest pace in seven months, a sign the industry will lead the U.S. expansion early this year, the Institute for Supply Management’s manufacturing index showed today. Mexico sends 80 percent of its exports to the U.S.
“This is very peso supportive going forward,” Aryam Vazquez, an emerging-markets economist at Wells Fargo & Co., said in a telephone interview from New York. “The fact that you have better recovery trends in the U.S. is very supportive of the underlying, and thus far resilient, growth trends in the Mexican economy.”
Mexico’s economy probably grew 3.7 percent in the fourth quarter from a year earlier and 4 percent in 2011, the Finance Ministry said in an e-mailed statement on Jan. 30.
The ISM’s manufacturing index climbed to 54.1, the highest since June, from 53.1 in December, the Tempe, Arizona-based group’s report showed today. Figures greater than 50 signal expansion. The median forecast of economists surveyed by Bloomberg was 54.5.
The yield on Mexico’s peso-denominated bonds due in 2024 was little changed at 6.18 percent, according to data compiled by Bloomberg. The price of the securities rose 0.03 centavo to 133.85 centavos per peso.
--Editors: Marie-France Han, Glenn J. Kalinoski
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