Mexico’s peso held within 0.2 percent of a two-week high on speculation Latin America’s second-biggest economy is strong enough to withstand global headwinds.
The peso was little changed at 12.7516 per U.S. dollar at 9:56 a.m. in Mexico City, after touching 12.7283 yesterday, the highest intraday price since Dec. 19. The currency strengthened 8.4 percent in 2012.
“The Mexican economy is looking relatively strong compared with a lot of its neighbors in Latin America going into 2013,” said Mike Moran, a senior currency strategist at Standard Chartered Plc in New York. “The currency has performed well because domestic growth has been resilient.”
President Enrique Pena Nieto, who took office Dec. 1, has said he’ll push for changes to boost economic growth, including opening up the state-controlled energy industry to more private investment. The Purchasing Managers Index for Mexico rose in December to 57.1 from 55.6 the prior month, the highest on record going back to April 2011, HSBC Plc said yesterday in a report using data compiled by Markit.
Mexico’s economy will probably expand 3.5 percent this year, according to the median forecast of 27 economists surveyed by Bloomberg.
Eleven of the dollar’s 16 most-traded counterparts fell today amid rising speculation that the U.S. budget deal unveiled this week will fall short of ensuring growth in the world’s biggest market. The agreement struck in Washington to undo automatic tax increases doesn’t reduce deficits enough to avoid a sovereign-rating downgrade, Moody’s Investors Service said yesterday.
Yields on benchmark peso bonds due in 2024 rose two basis points, or 0.02 percentage point, to 5.48 percent today, according to data compiled by Bloomberg. The price fell 0.15 centavo to 139.56 centavos per peso.
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