Mexico’s peso declined after a report showed that service industries in the U.S. expanded at a slower pace than projected in April, dimming the outlook for the Latin American nation’s exports.
The peso depreciated 0.3 percent to 12.9715 per U.S. dollar at 9:47 a.m. in Mexico City, from 12.9378 yesterday. It has rallied 7.4 percent against the dollar this year, the best performance among the 16 major currencies tracked by Bloomberg.
The Institute for Supply Management’s non-manufacturing index fell to a four-month low of 53.5 from 56 in March, below the median forecast of 55.3 among economists surveyed by Bloomberg. Readings above 50 signal expansion. The U.S. buys about 80 percent of Mexican exports.
“The news that has come out, in general, hasn’t been good,” Rodriguez said by phone from Guadalajara, Mexico. “We’re very tied to the U.S. economy.”
The yield on Mexico’s benchmark bonds due in 2024 fell four basis points, or 0.04 percentage point, to 6.18 percent. The price rose 0.43 centavo to 133.38 centavos per peso.
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