Bloomberg News

Mexico Peso Gains as U.S. Jobs Report Boosts Economic Outlook

March 09, 2012

Mexico’s posted a weekly advance as a bigger-than-forecast increase in U.S. payrolls last month boosted the outlook for exports from the Latin American country.

The peso climbed 0.3 percent to 12.6425 per U.S. dollar at a.m. in Mexico City, from 12.6785 yesterday. The currency’s third-straight daily gain pushed its weekly advance to 0.9 percent and 10.2 percent on the year. It’s risen 23.1 percent since the global stock market bottomed and began a bull market three years ago today.

Employers in the U.S. boosted payrolls by a more-than- forecast 227,000 in February, Labor Department figures released today showed. Mexico, which sends 80 percent of its exports to the U.S., may grow more than the government’s 3.5 percent forecast as there could be “positive surprises,” Mexican Finance Minister Jose Antonio Meade said yesterday in an interview at Bloomberg headquarters in New York.

“The situation in the U.S. is a little bit rosier than it was several months ago,” Aryam Vazquez, an emerging-markets economist at Wells Fargo & Co., said in a telephone interview from Harrington Park, New Jersey. “That’s obviously very peso- supportive.”

Companies in the U.S. added 216,000 workers last month, according to a March 7 report by ADP Employer Services.

The yield on the country’s peso-denominated debt due in 2024, known as Mbonos, rose two basis points, or 0.02 percentage point, to 6.38 percent, according to data compiled by Bloomberg. The price fell 0.23 centavo to 131.54 centavos per peso.

To contact the reporter on this story: Ben Bain in New York at bbain2@bloomberg.net

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


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