Mexico Peso Falls as Japan Adds to Global GDP Concern
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The peso weakened 0.1 percent to 13.0973 per dollar at 7:57 a.m. in Mexico City. The drop pared this year’s rally to 6.4 percent, still the biggest gain among the dollar’s 16 most- traded counterparts tracked by Bloomberg.
Mexico’s currency fell as gross domestic product in Japan, the world’s third-largest economy, advanced an annualized 1.4 percent in the three months through June, less than the median estimate of 2.3 percent in a Bloomberg News survey. The report comes after data on Aug. 10 showed that export growth in China, the world’s second-biggest economy, collapsed last month.
Speculation that Europe’s debt crisis would hurt Mexican exports helped make the peso Latin America’s worst-performing major currency in 2011. The country depends on exports for about 30 percent of its gross domestic product, sending about 80 percent of them to the U.S.
Yields on Mexican peso bonds due in 2024 fell four basis points, or 0.04 percentage point, to 5.37 percent today, according to data compiled by Bloomberg. The price rose 0.49 centavo to 141.66 centavos.
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