Mexico’s peso rose toward a 19-month high as lawmakers considered a bill to bolster competition in media and telecommunications and as Excelsior reported that the government was preparing energy legislation.
The currency appreciated 0.4 percent to 12.2973 per U.S. dollar at 7:59 a.m. in Mexico City after touching 12.2529 yesterday, the strongest intraday level since September 2011. The peso has rallied 4.5 percent this year, the most among 16 major dollar counterparts tracked by Bloomberg.
“Reforms are a major reason” for the peso’s strength, Eduardo Suarez, a Latin America foreign-exchange strategist at Bank of Nova Scotia in Toronto, said in an e-mailed response to questions.
The peso strengthened as the Senate debated legislation that would ease dominance of companies in telecommunications and broadcasting, part of a package of bills designed to bolster the economy. Mexico’s lower house of Congress approved on March 22 a modified version of the legislation, which now requires two-thirds approval in the Senate.
President Enrique Pena Nieto’s administration will probably also submit an energy bill before the end of the month, Alicia Salgado, a columnist at Excelsior, reported this week, without saying where she got the information.
The peso briefly pared its gains after the U.S. Labor Department reported that initial jobless claims exceeded forecasts last week. Mexico sends about 80 percent of its exports to its northern neighbor.
Yields on peso bonds due in 2024 fell two basis points, or 0.02 percentage point, to 4.99 percent today, according to data compiled by Bloomberg. The price rose 0.19 centavo to 144.31 centavos per peso. While yields have tumbled 146 basis points in the past year, they’re up 11 basis points from their record low touched on March 13.
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