Mexico’s peso fell for a fifth day after Moody’s Investors Service lowered the outlook for three top-rated European countries, adding to concern that the region’s debt crisis will erode global growth.
The peso dropped 0.9 percent to 13.7090 per dollar at 4 p.m. in Mexico City, posting for its longest losing streak in two months. The decline trimmed its rally this year to 1.7 percent, the second-biggest among the most-traded currencies tracked by Bloomberg.
Most emerging-market currencies fell today after Moody’s said it had a negative outlook on the Aaa credit ratings of Germany, the Netherlands and Luxembourg, citing risks posed by Europe’s debt crisis. It left Finland as the only country in the 17-nation euro region with a stable outlook for its top ranking.
Speculation that the European crisis would hurt the market for Mexican exports helped make the peso Latin America’s worst-performing major currency in 2011.
Mexico’s central bank yesterday sold $281 million in a dollar auction designed to limit the peso’s volatility. Since November, it has been offering $400 million daily at an exchange rate that’s at least 2 percent weaker than the previous day’s official fix level.
Yesterday’s sale was the biggest since the nation’s currency exchange commission announced the program.
The yield on Mexican local-currency bonds due in 2024 rose eight basis points, or 0.08 percentage point, to 5.23 percent, according to data compiled by Bloomberg. The price fell 0.92 centavo to 143.49 centavos per peso.