Feb. 29 (Bloomberg) -- Mexico’s peso fell for the first time in three days after Federal Reserve Chairman Ben S. Bernanke’s remarks to Congress reduced speculation of more quantitative easing to help the U.S. economy.
The peso declined 0.1 percent to 12.8624 per U.S. dollar at 4 p.m. in Mexico City, from 12.8444 yesterday. The currency has advanced 8.3 percent this year.
While Bernanke affirmed in congressional testimony that U.S. interest rates are likely to stay low at least through late 2014, he didn’t indicate that further monetary easing is under consideration. His comments led the peso, which rose earlier after euro-area banks tapped the European Central Bank for more cash than forecast and stronger U.S. growth boosted the outlook for Mexican exports, to reverse gains, according to Aryam Vazquez, an emerging-markets economist at Wells Fargo & Co.
“A lack of conviction today is probably to be expected given the wide array of news we got,” Vazquez said by phone from Harrington Park, New Jersey. Bernanke’s testimony “dampens this view of this massive global liquidity flush” which would support the peso, he said.
The yield on the 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 0.09 centavo to 130.36 centavos per peso.
To contact the reporter on this story: Ben Bain in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com