Mexico Peso Declines Most Among Major Latin American Currencies
Mexico’s peso fell the most among major Latin American currencies as the International Monetary Fund reduced its global economic growth forecast, sapping demand for emerging-market assets.
The peso depreciated 0.3 percent to 12.6606 per U.S. dollar at 10:55 a.m. in Mexico City after touching 12.5867 on Jan. 17, the strongest level on a closing basis since March 13.
Mexico’s currency weakened as the IMF said today that the world economy will expand 3.5 percent this year, less than the 3.6 percent forecast in October. The Washington-based bank left its projection for Mexico’s growth at 3.5 percent.
“We’re seeing some generalized risk reduction across asset classes now including the Mexican peso,” Nick Chamie, the global head of foreign-exchange strategy and emerging-markets research at Royal Bank of Canada, said in a phone interview from Toronto. “The relatively small downgrades in the growth projections have weakened global risk appetite.”
Yields on peso bonds maturing in 2024 dropped four basis points, or 0.04 percentage point, to 5.16 percent, according to data compiled by Bloomberg. The price increased 0.47 centavo to 143.02 centavos per peso.
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