Mexico Peso Falls for First Time in Seven Days on Europe Concern
The peso depreciated 0.8 percent to 13.0844 per dollar at 4 p.m. in Mexico City, the first decline since Aug. 30. The currency touched 12.9478 on Sept. 7, the strongest level since May 3. It has rallied 6.5 percent against the dollar this year, the biggest gain against the greenback’s 16 most-traded counterparts.
Concern is mounting over whether a European Central Bank bid to gain control over the region’s three-year-old debt crisis will succeed after Greek Prime Minister Antonis Samaras failed to secure agreement from coalition partners on spending cuts. Germany’s highest court will issue a ruling this week on bids to halt the country’s participation in the European Stability Mechanism.
“They need to act,” Roberto Galvan, a currency trader at Intercam Casa de Bolsa SA, said by phone from Mexico City. “When one has problems, one has to take strong measures.”
The yield on Mexico’s peso-denominated debt due in 2024 rose four basis points, or 0.04 percentage point, to 5.63 percent, according to data compiled by Bloomberg. The price fell 0.40 centavo to 138.66 centavos per peso.
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