Mexico’s peso headed for its biggest weekly drop in more than five months as Greece’s struggle to form a government sapped demand for the Latin American nation’s higher-yielding assets.
The currency depreciated 0.3 percent to 13.5532 per U.S. dollar at 7:51 a.m. in Mexico City, extending its weekly drop to 2.7 percent, the most since the five days ended Nov. 25.
The yield on Mexico’s peso bonds due in 2024 rose two basis points, 0.02 percentage point, to 6.31 percent, according to prices compiled by Bloomberg. The price fell 0.21 centavo to 131.94 centavos per peso.
The peso declined as Greece’s political leaders began a fifth day of talks to carve out a government. In November, Mexico’s Currency Exchange Commission started offering $400 million of its reserves daily to thwart volatility in the peso as Europe’s debt crisis intensified.
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