Bloomberg News

Mexican Peso Snaps Four-Day Slide as Greek Polls Push Oil Higher

May 28, 2012

Mexico’s peso climbed for the first time in five days as concern eased that Greece will leave the euro, buoying demand for higher-yielding emerging-market assets.

The peso climbed 0.6 percent to 13.9498 per U.S. dollar at 4 p.m. in Mexico City. All 16 major currencies climbed on the day against the dollar.

Greek opinion polls showed growing support for parties backing a bailout plan. Greece’s New Democracy placed first in all six opinion polls published on May 26 as campaigning continued for the general election on June 17.

“Any news that’s not bad regarding Greece helps the market,” said Miguel Blando, a currency trader at Intercam Casa de Bolsa SA in Mexico City. “It gives you a bit of an excuse to not be so negative on the peso because the Mexican fundamentals are still good.”

Crude for July delivery rose 0.3 percent to $91.14 a barrel in electronic trading on the New York Mercantile Exchange. State-owned Petroleos Mexicanos is the world’s third-biggest oil producer.

“Higher petroleum prices imply a greater flow of dollars into the country and that has to help you,” said Erick Urtuzuastegui, an economist at Prognosis, a provider of economic research to Mexican banks and brokerages.

Yields on Mexico’s benchmark peso bonds due in 2024 fell three basis points, or 0.03 percentage point, to 6.23 percent. The price of the securities rose 0.3 centavo to 132.71 centavos per peso.

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

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


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