Aug. 13 (Bloomberg) -- Mexico’s peso fell for the first time in four days after a report showing that Japan’s economy grew last quarter less than forecast added to concern the global expansion is slowing.
The peso weakened 0.5 percent to 13.1498 per dollar at 4 p.m. in Mexico City. The drop pared this year’s rally to 6 percent, still the biggest gain among the dollar’s 16 most-traded counterparts tracked by Bloomberg.
Mexico’s currency fell as gross domestic product in Japan, the world’s third-largest economy, advanced an annualized 1.4 percent in the three months through June, less than the median estimate of 2.3 percent in a Bloomberg survey. The report came after data on Aug. 10 showed that export growth in China, the world’s second-biggest economy, collapsed last month.
“You’re seeing risk markets generally underperforming today,” Nick Chamie, global head of foreign-exchange strategy and head of emerging-markets research at Royal Bank of Canada, said by phone from Toronto. “We had the weaker-than-expected data out of Japan, and then we had sort of the ongoing concerns out of Europe.”
Speculation that Europe’s debt crisis will hurt Mexican exports helped make the peso Latin America’s worst-performing major currency in 2011. The country depends on exports for about 30 percent of its gross domestic product, sending about 80 percent of them to the U.S.
Yields on Mexican peso bonds due in 2024 fell three basis points, or 0.03 percentage point, to 5.39 percent today, according to data compiled by Bloomberg. The price rose 0.32 centavo to 141.49 centavos.
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