Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mexican Peso Rises as Greece Optimism Boosts Economic Confidence

Feb. 17 (Bloomberg) -- Mexico’s peso gained for a second day as optimism that Greece will get a bailout reduced concern about global growth, fueling confidence in the expansion of Latin America’s second-biggest economy.

The peso rose 0.5 percent to 12.7593 per U.S. dollar at the close in Mexico City, from 12.8174 yesterday. It has gained 0.3 percent this week, and 9.2 percent this year.

Emerging-market currencies rose against the dollar as investors speculated that euro-area officials are nearing an agreement on a bailout for Greece. U.K. retail sales unexpectedly rose for a second month in January. The index of U.S. leading indicators rose in January for a fourth month, signaling the world’s largest economy will keep expanding through the first half of 2012. The U.S. is the destination for about 80 percent of Mexican exports.

“There’s good data in Europe, in particular in the U.K.,” Rafael Camarena, a Mexico City-based economist at Banco Santander SA, said by phone. “If the European economy improves, the global economy also could feel the impact -- the U.S. and Mexico.”

Mexico central bank Governor Agustin Carstens said this week that that economic growth expectations for the Latin American country haven’t fallen, maintaining his forecasts for expansion this year and next of 3 percent to 4 percent.

Euro-area governments closed in on a deal to unlock a 130 billion-euro ($171 billion) aid package for Greece, seeking to avert the region’s first sovereign default. Germany, the biggest country contributor to euro-area rescues, signaled that finance ministers may be ready to back Greece’s second bailout in two years when they meet Feb. 20 in Brussels.

The yield on peso-denominated debt due in 2024 rose three basis points, or 0.03 percentage point, to 6.5 percent, according to data compiled by Bloomberg. The price of the securities fell 0.29 centavo to 130.39 centavos per peso.

To contact the reporter on this story: Ben Bain in Mexico City at bbain2@bloomberg.net

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.