Mexican Peso Holds Close to Two-Week High as U.S. Talks Progress
Mexico’s peso held within 0.01 percent of a two-week high amid speculation U.S. politicians will agree to raise the nation’s debt ceiling before a deadline, bolstering the outlook for the Latin American nation’s biggest export market.
The currency was little changed at 12.9944 per U.S. dollar today after closing at a two-week high of 12.9925 on Oct. 11. The peso has slumped 1.1 percent this year.
The currency erased earlier loses as Democratic and Republican leaders in the U.S. Senate said they were optimistic for a deal to end a fiscal impasse before the government’s borrowing authority lapses on Oct. 17. A partial shutdown of the U.S. government, now in its third week, has added to concern over Latin America’s second-biggest economy that’s already posting the slowest growth since 2009. Mexico sends 80 percent of exports to its northern neighbor.
“People are hoping that at some point there’s going to be resolution over the debt ceiling,” Agustin Villarreal, fixed-income and foreign exchange director at Grupo Financiero Invex SA in Mexico City, said in a telephone interview.
Yields on Mexico’s peso bonds due in December 2024 were little changed at 5.89 percent today, according to data compiled by Bloomberg.
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