Feb. 28 (Bloomberg) -- Mexico’s peso rose for a second day as an improvement in European economic confidence buoyed the outlook for global growth and exports from Latin America’s second-biggest economy.
The peso gained 0.4 percent to 12.8444 per U.S. dollar at 4 p.m. in Mexico City, from 12.8907 yesterday. The peso has advanced 8.5 percent this year.
Economic confidence in the euro area improved more than forecast in February, adding to signs the region’s economy is stabilizing after a fourth-quarter contraction. Concern the zone’s debt crisis would damp Mexican exports helped make the peso the region’s worst-performing currency in 2011.
“The data in Europe was good in general and that’s what made the currency rise,” Pepe Curiel, a currency trader at Intercam Casa de Bolsa SA, said by phone from Mexico City.
European banks will probably tap the European Central Bank for 470 billion euros ($633 billion) of three-year funds tomorrow, according to a Bloomberg survey of analysts.
Mexico sold all 7 billion pesos of 28-day Cetes and 8 billion pesos of the 91-day securities it offered today, the central bank said on its website. Mexico also sold all 8.5 billion pesos in 175-day bills it auctioned, the bank said.
The yield on peso-denominated debt due in 2024 rose one basis point, or 0.01 percentage point, to 6.49 percent, according to data compiled by Bloomberg. The price fell 0.13 centavo to 130.46 centavos per peso.
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