Mexican Peso Strengthenss the Most Since June on U.S. Manufacturing Data

Mexico’s peso rose the most since June after manufacturing in the U.S., the nation’s largest trading partner, expanded faster than forecast in August.

The peso gained 1.1 percent to 13.0664 per dollar at 12:31 p.m. New York time, from 12.2046 yesterday. The currency earlier gained 1.3 percent, the most on an intraday basis since June 10.

“The peso is moving on the better-than-expected ISM manufacturing numbers,” said Omar Martin del Campo, a trader at Banco ve Por Mas SA in Mexico City. “There have been comments from the Fed, that they will make the necessary moves to avert a slowdown, and that is definitely helping.”

The Institute for Supply Management’s factory index rose to 56.3 in August. Economists had estimated a decline to 52.8, according to the median estimate in a Bloomberg survey. Readings greater than 50 signal growth. The U.S. purchases about 80 percent of Mexico’s exports.

The yield on Mexico’s 10 percent bond due in 2024 rose two basis points, or 0.02 percentage point, to 6.65 percent, according to Banco Santander SA. The price fell 0.21 centavo to 130.80 centavos per peso.

To contact the reporter on this story: Andres R. Martinez in Mexico City at amartinez28@bloomberg.net

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