Mexico’s peso fell, slipping the most among major currencies, as Hurricane Sandy moved toward the U.S. East Coast, bearing down on a stretch of the Latin American nation’s biggest export market.
The peso fell 0.6 percent to 13.0734 at 3 p.m. in Mexico City, the most among the dollar’s 16 top-traded global counterparts tracked by Bloomberg. The peso’s 1.6 percent slump in the past month has trimmed its year-to-date advance to 6.6 percent. One-month historical volatility, which measures the magnitude of fluctuations over the period, climbed to 6.87 percent from 6.61 percent on Oct. 26., according to data compiled by Bloomberg. The gauge fell to 5.98 percent on Oct. 16, the lowest since March 2011.
Hurricane Sandy bore down on New York packing 90-mile-per - hour maximum sustained winds, forcing the cancellation of stock trading today as it churned toward the U.S., which purchases 80 percent of Mexico’s exports. U.S. stocks trading was also canceled for tomorrow.
“We’re waiting to see how hard we get hit by the fact that Sandy is near the East Coast of the U.S.,” Roberto Galvan, a currency trader at Intercam Casa de Bolsa SA, said by phone from Mexico City. “There’s going to be little interest in getting into risk markets.”
Peso trading volume has been partially limited by the storm, according to Galvan.
Yields on peso bonds due in 2024 rose one basis point, or 0.01 percentage point, to 5.62 percent, according to data compiled by Bloomberg. The price fell 0.1 centavo to 138.49 centavos per peso.