Bloomberg News

Mexico Peso Rises as Greece Austerity Plan Boosts Export Outlook

February 14, 2012

Feb. 13 (Bloomberg) -- Mexico’s peso jumped the most in a week after Greek lawmakers approved austerity plans to secure rescue funds, boosting demand for higher-yielding assets.

The peso gained 0.5 percent to 12.7410 per U.S. dollar at 8:58 a.m. Mexico City time, from 12.8021 on Feb 10. On a closing basis, it would be the biggest increase since Feb. 3. The peso has gained 9.4 percent this year, the most among major currencies tracked by Bloomberg.

“Aversion to risk has declined, so this helps all emerging markets,” Roberto Galvan, a currency trader at Intercam Casa de Bolsa SA, said by phone from Mexico City.

While data showed today that Mexico’s industrial production rose 2.8 percent in December from a year earlier, manufacturing “is still behaving relatively well,” Rafael Camarena, a Mexico City-based economist at Banco Santander SA, said by phone. Output from manufacturing industries rose 3.7 percent in December from a year earlier, compared with a 4 percent annual expansion in November, the national statistics agency said on its website.

The yield on peso-denominated debt due in 2024 fell three basis points, or 0.03 percentage point, to 6.51 percent, according to data compiled by Bloomberg. The price of the securities rose 0.34 centavo to 130.25 centavos per peso.

--With assistance from Maria Petrakis in Athens. Editors: Glenn J. Kalinoski, Lester Pimentel

To contact the reporter on this story: Ben Bain in Mexico City at

To contact the editor responsible for this story: David Papadopoulos at

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