Mexico’s peso reached the strongest level in a week on speculation European leaders will step up efforts to support global growth, encouraging demand for the Latin American nation’s higher-yielding assets.
The currency was little changed at 13.6929 per dollar at 8:29 a.m. in Mexico City after earlier appreciating to 13.6650, the strongest level since May 15. The peso has gained 1.7 percent this year.
Mexico’s gross domestic product will expand 3.7 percent this year, according to a survey of economists released yesterday by Citigroup Inc.’s Banamex unit. The economy was expected to expand 3.5 percent this year in the previous biweekly survey.
The yield on Mexican local-currency bonds due in 2024 was little changed at 6.21 percent, according to data compiled by Bloomberg. The price fell 0.03 centavo to 133 centavos per peso.
The currency rose 0.9 percent yesterday after Chinese Premier Wen Jiabao pledged over the weekend to put more emphasis on bolstering growth in the world’s second-biggest economy.
European leaders will do “everything necessary” to keep Greece in the euro and focus on steps to aid economic expansion, German Finance Minister Wolfgang Schaeuble said yesterday.
To contact the reporter on this story: Ben Bain in Mexico City at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org