Mexico’s peso rose to a three-week high after a report showing U.S. manufacturing unexpectedly expanded in April bolstered optimism about economic growth in the Latin American country’s top export market.
The peso gained 1 percent to 12.8886 at 11:31 a.m. New York time, and earlier climbed to 12.8843, the strongest since April 6. Mexico’s currency has risen 8.1 percent this year, the most among all of its 16 most-traded peers.
“Even when U.S. data are mixed, the manufacturing sector seems to be doing better than the rest,” Benito Berber, a Latin America strategist at Nomura Securities Inc., said in a telephone interview. “Mexico benefits directly from an improved U.S. manufacturing sector.”
Mexico sends about 80 percent of its exports to the U.S.
The peso was the best performer today among a basket of 25 emerging-market currencies tracked by Bloomberg. There was no trading of local bonds as the market was closed for a holiday.
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