Mexican Peso Drops on Weaker-Than-Forecast U.S. Durable Goods
Mexico’s peso fell after durable goods orders in the U.S., the biggest buyer of the Latin American country’s exports, rose less than forecast last month.
The peso slid 0.7 percent to 12.7942 per U.S. dollar at 8:57 a.m. in Mexico City, from 12.7025 yesterday. The currency has gained 8.9 percent this year, the most among major currencies tracked by Bloomberg.
Demand for the peso weakened after the Commerce Department said today in Washington that U.S. bookings for goods meant to last at least three years climbed 2.2 percent in February after a revised 3.6 percent decline the prior month. Economists forecast a 3 percent gain in February, according to the median estimate in a Bloomberg News survey.
“The market was a bit too optimistic,” Pedro Tuesta, a Washington-based Latin America economist at 4Cast Inc, said by phone. “The export rebound may not last if durable goods continue to be weaker than expected.”
Mexican exports will probably climb from last year’s record high as demand from the U.S. increases, adding to dollar inflows, Mexican Finance Minister Jose Antonio Meade said in an interview at Bloomberg headquarters in New York earlier this month.
The yield on peso-denominated debt due in 2024 fell one basis point, or 0.01 percentage point, to 6.45 percent, according to data compiled by Bloomberg. The price rose 0.11 centavo to 130.67 centavos per peso.
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