Mexican Peso Gains Most in Week Amid Rising Economic Confidence
The peso advanced the most in a week as better-than-forecast economic data in Mexico and the U.S. bolstered the growth outlook.
Mexico’s peso appreciated 0.6 percent to 12.8392 per dollar at 1:19 p.m. in Mexico City, extending its rally this year to 8.5 percent, the biggest among the greenback’s 16 most-traded counterparts tracked by Bloomberg.
The S&P/Case-Shiller index of property values in 20 U.S. cities rose in July more than forecast, fueling optimism about the world’s biggest economy, the destination of 80 percent of Mexican exports. Mexico’s IGAE global economic indicator, a measure of gross domestic product, showed an expansion of 4.7 percent in July.
The peso’s gain is “largely driven by better data prints in the U.S., coupled with the latest IGAE release in Mexico that further underscores” strong growth in the Latin American country, Aryam Vazquez, an economist for global emerging markets at Wells Fargo & Co., said in an e-mailed message.
Confidence among U.S. consumers rose in September to a seven-month high, according to an index from the Conference Board, a New York-based private research group, released today.
Yields on Mexican peso bonds due in 2024 fell one basis point, or 0.01 percentage point, to 5.43 percent, according to data compiled by Bloomberg. The price rose 0.13 centavo to 140.81 centavos per peso.
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