Mexican Peso Advances Most in Six Weeks on U.S. Jobs Data
Mexico’s peso gained the most in six weeks as a report showed U.S. companies added more workers in October than forecast, boosting the outlook for Latin America’s second-biggest economy.
The peso appreciated 0.7 percent to 13.0067 per dollar at 3 p.m. in Mexico City, extending its rally this year to 7.1 percent, the biggest advance among the greenback’s 16 most- traded counterparts tracked by Bloomberg. It earlier touched 13.1289 per dollar, the weakest intraday level since Sept. 6.
“We got a stronger-than-expected number and that helped” boost the peso, Eduardo Suarez, a Latin America strategist at Scotiabank in Toronto, said in a telephone interview from Toronto. “The risk-on, risk-off trade is big right now.”
U.S. companies added 158,000 workers in October, ADP Research Institute reported today, exceeding the 131,000 median forecast of economists surveyed by Bloomberg. Mexico sends 80 percent of its exports to its northern neighbor.
U.S. payrolls probably rose by 125,000 workers in October, and the jobless rate increased to 7.9 percent from a three-year low of 7.8 percent reached in September, according to the median forecasts of economists surveyed by Bloomberg.
An October survey of private-sector Mexico economists by the nation’s central bank released today showed analysts boosted their forecast for annual expansion at the end of 2012 to 3.87 percent from 3.85 percent in September and to 3.56 percent in 2013 from 3.53 percent in the previous month’s survey.
The yield on Mexican local-currency bonds due in 2024 rose two basis points, or 0.02 percentage point, to 5.60 percent, according to data compiled by Bloomberg. The price fell 0.23 centavo to 138.63 centavos per peso.
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org