Mexico Peso Drops for First Time in Three Days on Export Concern
Mexico’s peso fell for the first time in three days on concern demand for its exports will decrease amid speculation European policy makers meeting today will struggle to find a solution for Greece’s debt crisis.
The currency dropped 0.2 percent to 12.9909 per U.S. dollar at 8:44 a.m. in Mexico City. The peso is up 7.3 percent this year, still the best performance among the greenback’s 16 most- traded counterparts in 2012.
Euro-area finance ministers are meeting in Brussels to try to clear the next installment of aid to Greece after failing to make the decisions in previous meetings this month. Mexico posted a $1.65 billion trade deficit for October, according to data released today, more than triple the median estimate for a $553 million gap among economists surveyed by Bloomberg.
“The euro-zone finance ministers have been discussing this situation for several weeks and they haven’t released the resources for aid,” Rafael Camarena, an economist at Banco Santander SA (SAN) in Mexico City, said in a telephone interview. “This is what’s making a bit of noise in the market.”
European turmoil and concern about the impact on the market for Mexico’s exports helped make the peso the worst-performing major Latin American currency in 2011.
Yields on Mexico’s local currency bonds due in 2024 declined one basis point, 0.01 percentage point, to 5.59 percent today, according to data compiled by Bloomberg. The price rose 0.07 centavo to 138.62 centavos per peso.
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