Mexico’s Currency Advances Most in Two Months on Export Outlook

Mexico’s peso rose the most in two months as data showed U.S. employers increased payrolls last month, buoying the outlook for the Latin American nation’s biggest export market.

The peso advanced 0.9 percent to 13.0039 per U.S. dollar at 3 p.m. in Mexico City trading, the biggest gain on a closing basis since Feb. 4. The currency rose 0.5 percent this week.

U.S. payrolls rose 192,000 after a 197,000 gain in February that was larger than first estimated, the Labor Department reported today in Washington. The unemployment rate held at 6.7 percent. Mexico sends about 80 percent of its exports to the U.S.

The increase in jobs and steady unemployment help “confirm investor expectations that recent weakness in the U.S. economy was related to the impact of bad whether,” Juan Carlos Alderete, a currency strategist with Grupo Financiero Banorte SAB, wrote in an e-mailed research note today. That’s generating “concentrated risk appetite” for emerging markets, he wrote.

In minutes of Mexico’s March 21 central bank meeting released today, a majority of board members said inflation risks improved. Separately, central bank Governor Agustin Carstens said in an interview with El Financiero Bloomberg TV that recent economic reports were “encouraging.”

Peso bonds due in 2024 rose 0.57 centavo to 129.38 centavos per peso today, according to data compiled by Bloomberg. Yields on the securities fell six basis points, or 0.06 percentage point, to 6.22 percent.

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

To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net Richard Richtmyer, Bradley Keoun

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