July 17 (Bloomberg) -- Nomura Holdings Inc. cut its year-end forecast for the Mexican peso to 13.85 per U.S. dollar from 12.80 as Europe’s sovereign-debt crisis drags on.
The peso “is particularly sensitive to global risk-on and risk-off periods,” Benito Berber, a New York-based strategist for the bank, wrote in an e-mailed report. “The eurozone crisis has yet to reach its climax.”
The peso may also fall as the U.S. approaches the so-called fiscal cliff, when more than $600 billion in higher taxes and reductions in defense and other government programs will be implemented if Congress doesn’t take action, he said.
To contact the reporter on this story: Veronica Navarro Espinosa in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com