Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mexico Peso Rises Amid Spain Bailout Speculation; Bonds Advance

Sept. 21 (Bloomberg) -- Mexico’s peso rose for the first time in five days on a newspaper report that Spain will announce an economic reform program allowing the country to seek a bailout, spurring demand for higher-yielding assets.

The currency appreciated 0.1 percent to 12.8416 per U.S. dollar at 12:10 p.m. in Mexico City, extending its rally this year to 8.4 percent, the biggest gain among the dollar’s 16 most-traded counterparts tracked by Bloomberg. Today’s advance pared the peso’s loss this week to 1 percent.

“Improved global risk perceptions, driven mainly by aggressive liquidity fixed by the leading central banks and speculation that the EU is readying a financial bailout for Spain, are supportive of the peso today,” Aryam Vazquez, an economist for global emerging markets at Wells Fargo & Co., said in an e-mailed message.

Spain’s Economy Minister Luis de Guindos is in talks with European Commission authorities to facilitate a new bailout program that will be presented Sept. 27, the Financial Times reported, citing unidentified officials involved in the discussions. Concern over how Europe’s debt crisis is weighing on the global economy and lower demand for Mexican exports helped make the peso Latin America’s worst-performing major currency in 2011.

The yield on Mexican local-currency bonds due in 2024 fell four basis points, or 0.04 percentage point, to 5.54 percent, according to data compiled by Bloomberg. The price rose 0.38 centavo to 139.51 centavos per peso. Yields on the debt have decreased 19 basis points on the week, the most on a closing basis since the period ended July 20.

To contact the reporter on this story: Ben Bain in Mexico City at bbain2@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.