Mexico’s peso entered its longest winning streak since November as employers in the U.S., the nation’s largest trading partner, added more jobs than forecast last month.
The peso rose for a fourth day, adding 0.3 percent to 12.1875 per dollar at 5 p.m. New York time, from 12.2276 yesterday. The peso gained for seven straight through Nov. 5.
U.S. employers added 297,000 jobs last month, ADP Employer Services said, beating the median estimate for a gain of 100,000 among 33 economists surveyed by Bloomberg. The U.S. purchases about 80 percent of Mexico’s exports.
“The ADP is definitely a big upside surprise,” said Clyde Wardle, emerging-market currency strategist at HSBC Holdings Plc in New York. “As Mexico remains beholden to the U.S. economic health, the number is good for Mexico and good for the peso.”
The yield on Mexico’s 10 percent bond due in 2024 rose 13 basis points, or 0.13 percentage point, to 7.325 percent, according to Banco Santander SA. The price fell 1.3 centavo to 123.28 centavos per peso.
Yields on the benchmark bonds fell as much as 201 basis points to a record low of 6.258 percent last year as investors sought higher yields amid near-zero U.S. rates. The yields later gained on concern the U.S. economic recovery was sputtering and the European debt crisis may grow.
The yields on the nation’s bonds may be poised to drop, Finance Minister Ernesto Cordero said today in an interview with Radio Formula.
Mexico’s economy may grow 3.9 percent this year, according to a survey of analysts released today by Citigroup Inc.’s Banamex unit. The previous forecast had been for gross domestic product to rise 3.7 percent.
Traders didn’t trigger any of the dollar options available today, the central bank said on its website. So far this month, $592 million in options have been exercised. The bank has been auctioning the options monthly, allowing it to purchase dollars as it seeks to boost foreign reserves after the peso reached a record low last year.
The currency climbed 6.1 percent last year, the biggest increase since at least 1993, when the government created the nuevo peso.