Mexico’s peso rose for a third day as better-than-estimated corporate earnings in the U.S. boosted the economic outlook for the chief destination of the Latin American country’s exports.
The peso climbed 0.5 percent to 13.071 per dollar at 9:50 a.m. in Mexico City, bringing its rally this year to 6.6 percent, the biggest among the most-traded currencies tracked by Bloomberg.
About 73 percent of the Standard & Poor’s 500 Index companies that reported second-quarter results have beaten analysts’ earnings estimates even as 59 percent missed sales projections, data compiled by Bloomberg show. Mexico depends on exports for about 30 percent of its gross domestic product and sends 80 percent of them to its northern neighbor.
The earnings “are being interpreted as good,” Eduardo Rodriguez, a currency trader at Casa de Bolsa Finamex SAB, said in a phone interview from Guadalajara, Mexico. “The environment of optimism is definitely going to continue. The peso has a big margin for appreciation for structural reasons.”
The yield on Mexican local-currency bonds due in 2024 declined two basis points, or 0.02 percentage point, to 5.40 percent, according to data compiled by Bloomberg. The price rose 0.2 centavo to 141.38 centavos per peso.
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