Mexico Peso Advances Before Growth Data as Cyprus Reaches Deal

Mexico’s peso advanced as euro area finance ministers agreed that Cyprus had met the conditions for a bailout, easing speculation that the island’s banking crisis would hurt global growth.

The peso gained 0.1 percent to 12.3435 per U.S. dollar at 7:34 a.m. in Mexico City, after touching 12.3220 per dollar, the strongest intraday level since September 2011. The currency has rallied 4.1 percent this year, the most among the dollar’s 16 major counterparts tracked by Bloomberg.

Cyprus reached a deal with the European Central Bank, the European Commission and the International Monetary Fund that sets the framework for a 10 billion-euro bailout for the island nation, the euro-area’s third-smallest economy. Mexico’s economic activity, as measured by the so-called IGAE, probably rose 2.6 percent in January, according to the median projection of 15 analysts surveyed by Bloomberg before a report due today at 8 a.m. local time.

“The rally was mostly Cyprus,” Eduardo Suarez, a Latin America currency strategist at Bank of Nova Scotia in Toronto, said in an e-mailed response to questions. “The IGAE could also matter.”

Yields on peso bonds due in 2024 rose two basis points, or 0.02 percentage point, to 5.01 percent today, according to data compiled by Bloomberg. The price fell 0.14 centavo to 144.26 centavos per peso.

To contact the reporter on this story: Jonathan Levin in Mexico City at jlevin20@bloomberg.net

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

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