Mexico’s peso rose for a third day after the U.S. economy expanded at a faster pace than analysts forecast, boosting the outlook for the Latin American country’s exports.
The peso climbed 1.3 percent to 13.2393 per dollar at 4 p.m. in Mexico City, bringing its rally this year to 5.3 percent, the biggest among the most-traded currencies tracked by Bloomberg. The peso last rose for three straight days in the period ending July 17. Today’s advance left the peso up 0.9 percent this week.
Mexico depends on exports for about 30 percent of its gross domestic product, and sends 80 percent of them to its northern neighbor. U.S. GDP rose at a higher-than-forecast 1.5 percent annual rate last quarter after a revised 2 percent gain in the prior quarter, Commerce Department figures showed today in Washington. The median forecast of economists surveyed by Bloomberg called for a 1.4 percent increase.
The currency extended gains as optimism rose that Europe’s policy makers will act to ease the region’s debt crisis.
European Central Bank President Mario Draghi will hold talks with Bundesbank President Jens Weidmann in an effort to overcome the biggest stumbling block to a new raft of measures including bond purchases, two central bank officials said on condition of anonymity because the talks are private.
The yield on Mexican local-currency bonds due in 2024 rose nine basis points, or 0.09 percentage point, to 5.38 percent, according to data compiled by Bloomberg. The price fell 1.06 centavo to 141.71 centavos per peso.
To contact the reporter on this story: Ben Bain in Mexico City at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com