Bloomberg News

Mexican Peso Climbs to Four-Month High on U.S. Jobless Claims

February 03, 2012

Feb. 2 (Bloomberg) -- Mexico’s peso climbed to a four-month high after initial jobless claims decreased more than forecast in the U.S., buoying optimism for growth in the world’s largest economy.

The peso gained 0.7 percent to 12.8013 per U.S. dollar today, the strongest level since Sept. 9, from 12.8923 yesterday. The currency has jumped 8.9 percent this year, the most among major Latin American currencies tracked by Bloomberg.

Applications for unemployment insurance payments in the U.S. dropped by 12,000 to 367,000 in the week ended Jan. 28, Labor Department figures showed today in Washington. The median forecast of 46 economists in a Bloomberg News survey projected 371,000. Expansion in the U.S. economy is offsetting concern about Europe’s debt crisis, increasing demand for emerging- market assets including the peso, said Rafael Camarena, a Mexico City-based economist at Banco Santander SA.

“The U.S. data keeps supporting the outlook for economic growth,” Camarena said in a telephone interview. “That’s definitely helping the peso.”

Mexico sends about 80 percent of its exports to the U.S.

The yield on Mexico’s peso-denominated bonds due in 2024 rose eight basis points, or 0.08 percentage point, to 6.25 percent, according to data compiled by Bloomberg. The price of the securities fell 0.84 centavo to 133.02 centavos per peso.

--Editor: Glenn J. Kalinoski

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

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


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