Mexico’s Peso Declines to Four-Week Low on Global Growth Concern

Mexico’s peso fell to its weakest level in four weeks as economic reports from Europe, Japan and South Korea fueled concern the global economy is slowing, curbing demand for emerging-market assets.

The currency depreciated 0.3 percent to 13.3478 per dollar at 4 p.m. in Mexico City, the lowest level since Aug. 2 on a closing basis. The slump pared this year’s increase to 4.4 percent, still the biggest among the dollar’s 16 most-traded counterparts.

A report today showed economic confidence in the euro area fell to a three-year low in August, dropping more than economists had forecast. Japan’s retail sales declined in July more than expected, figures from the trade ministry in Tokyo showed. In South Korea, confidence among manufacturers stayed near the lowest level since 2009, a report showed.

“Global economic data continues to highlight a weak backdrop for growth momentum,” Nick Chamie, head of global foreign-exchange strategy at Royal Bank of Canada in Toronto, said in a telephone interview. “It’s coming to the fore in terms of being a driver for global markets.”

The yield on Mexico’s peso-denominated bonds due in 2024 climbed two basis points, or 0.02 percentage point, to 5.52 percent, according to data compiled by Bloomberg. The price fell 0.28 centavo to 139.87 centavos per peso.

To contact the reporters on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net; Ben Bain in Mexico City at bbain2@bloomberg.net

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

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