Jan. 3 (Bloomberg) -- Mexico’s peso retreated after Federal Reserve policy makers said they will probably end their bond-purchase program this year, potentially curbing demand for emerging-market assets.
The peso fell 0.5 percent to 12.8066 per U.S. dollar at 4 p.m. in Mexico City, after touching 12.7283 yesterday, the highest intraday price since Dec. 19. The currency strengthened 8.4 percent in 2012.
Minutes from the latest Federal Open Market Committee meeting released today showed policy makers are likely to end their $85 billion monthly bond purchases sometime this year. Mexico’s sends about 80 percent of its exports to the U.S., the world’s biggest market, including most of its oil shipments. Crude fell for the first time in three days.
Yields on benchmark peso bonds due in 2024 rose two basis points, or 0.02 percentage point, to 5.48 percent today, according to data compiled by Bloomberg. The price fell 0.24 centavo to 139.53 centavos per peso.
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