Mexico’s peso slipped to the weakest level against the dollar in two weeks after manufacturing slowed in China and Europe, damping demand for higher-yield emerging-market assets.
The peso fell 0.8 percent to 12.8122 per U.S. dollar at 3 p.m. in Mexico City, and earlier dropped to 12.8656, the lowest since March 8. It’s strengthened 8.8 percent this year, the most among major currencies tracked by Bloomberg.
A gauge of European manufacturing fell to 47.7 in March from 49 in February, according to London-based Markit Economics. A preliminary measure of Chinese manufacturing slipped to 48.1 in March, the lowest level in four months, based on figures from HSBC Holdings Plc and Markit Economics.
Evidence of an economic slowdown in China and Europe’s debt crisis “have obviously created risk aversion in the market,” Aryam Vazquez, an emerging-markets economist at Wells Fargo & Co. in New York, said today in a telephone interview. “The peso is going to get hit during these times.”
The yield on peso bonds due in 2024 fell four basis points, or 0.04 percentage point, to 6.52 percent, according to data compiled by Bloomberg. The price rose 0.35 centavo to 129.95 centavos per peso.
To contact the reporter on this story: Jonathan J. Levin in Mexico City at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com