Breaking News

Tweet TWEET

Mexican Peso Year-End Forecast Downgraded by Nomura on Europe

Nomura Holdings Inc. cut its year- end forecast for the Mexican peso to 13.85 per U.S. dollar from 12.80 as Europe’s sovereign-debt crisis drags on.

The peso “is particularly sensitive to global risk-on and risk-off periods,” Benito Berber, a New York-based strategist for the bank, wrote in an e-mailed report. “The eurozone crisis has yet to reach its climax.”

The peso may also fall as the U.S. approaches the so-called fiscal cliff, when more than $600 billion in higher taxes and reductions in defense and other government programs will be implemented if Congress doesn’t take action, he said.

To contact the reporter on this story: Veronica Navarro Espinosa in New York at vespinosa@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.