Bloomberg the Company & Products

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’s Peso Advances After U.S. Sees Pickup in Manufacturing

Oct. 1 (Bloomberg) -- Mexico’s peso advanced after a report showed U.S. manufacturing in better shape than analysts forecast, boosting the economic outlook for the Latin American country’s chief trading partner.

The peso appreciated 0.2 percent to 12.8279 per dollar at 4 p.m. in Mexico City, extending its rally this year to 8.6 percent, the biggest gain among the greenback’s 16 most-traded counterparts tracked by Bloomberg.

Manufacturing in the U.S. unexpectedly expanded in September, as the Institute for Supply Management’s U.S. factory index rose to 51.5 from 49.6 a month earlier, indicating the industry is stabilizing after three months of contraction. Mexico, which relies on exports for about 30 percent of its gross domestic product, sends 80 percent of them to the U.S.

“The peso has been on a tear as of late,” Aryam Vazquez, an economist for global emerging markets at Wells Fargo & Co., said by phone from Harrington Park, New Jersey. “Anytime you have strong ISM manufacturing prints here in the U.S. it bodes well for Mexico given the synergies.”

Mexico’s lower house of Congress approved legislation easing the process of hiring and firing workers over the weekend. Supporters say the bill would foster job creation by luring businesses out of the informal sector and spur faster economic growth in Latin America’s second-biggest economy. The Senate is expected to vote on the measure this month.

Economists covering Mexico expect the economy to expand 3.85 percent in 2012, after growing 3.9 percent last year, according to the monthly central bank survey published today.

Yields on peso bonds due in 2024 was little changed at 5.40 percent, according to data compiled by Bloomberg. The price was unchanged at 141.01 centavos per peso.

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

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@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.