Mexico’s peso rose to a three-week high after a report showing U.S. manufacturing unexpectedly expanded in April bolstered optimism about economic growth in the Latin American country’s top export market.
The peso gained 1 percent to 12.8886 at 11:31 a.m. New York time, and earlier climbed to 12.8843, the strongest since April 6. Mexico’s currency has risen 8.1 percent this year, the most among all of its 16 most-traded peers.
The Institute for Supply Management’s U.S. factory index climbed to 54.8 last month, exceeding the most optimistic forecast of analysts surveyed by Bloomberg. Readings greater than 50 signal growth.
“Even when U.S. data are mixed, the manufacturing sector seems to be doing better than the rest,” Benito Berber, a Latin America strategist at Nomura Securities Inc., said in a telephone interview. “Mexico benefits directly from an improved U.S. manufacturing sector.”
Mexico sends about 80 percent of its exports to the U.S.
The peso was the best performer today among a basket of 25 emerging-market currencies tracked by Bloomberg. There was no trading of local bonds as the market was closed for a holiday.