Mexico’s peso gained the most in a week as concern eased that Europe’s debt crisis will worsen and as U.S. data showed employers added jobs at the fastest pace in three years.
The peso jumped 0.7 percent to 12.4018 per dollar at 5 p.m. New York time, from 12.4877 yesterday, the biggest advance since Oct. 24. The peso has gained 5.6 percent against the dollar this year, the fourth-best performer among the 16 major currencies tracked by Bloomberg. Japan’s yen is the best performer, followed by the Australian dollar and Singapore’s dollar.
European Central Bank President Jean-Claude Trichet told lawmakers yesterday that he didn’t believe that financial stability in the euro zone “could really be called into question,” stoking speculation policy makers meeting tomorrow may announce new measures to end Europe’s debt crisis.
“Trichet came out to say that the markets are underestimating the determination of European governments to solve the situation,” said Ramon Cordova, a currency strategist at Base Internacional Casa de Bolsa SA in Monterrey, Mexico. “The market is taking the U.S. data as a reason to spur a rally.”
U.S. employers added 93,000 jobs in November, more than the median estimate of analysts surveyed by Bloomberg, ADP Employer Services said today. The U.S. purchases about 80 percent of Mexico’s exports.
The yield on Mexico’s 10 percent bond due in 2024 rose six basis points, or 0.06 percentage point, to 7.015 percent, according to Banco Santander SA. The price of the security fell 0.67 centavo to 126.57 centavos per peso.
Traders didn’t trigger any of the $600 million in dollar options available today. The central bank has been auctioning the options monthly, allowing it to purchase dollars to boost foreign reserves after the peso reached a record low last year.