Mexican Currency Rises as U.S. Confidence Buoys Export Outlook
Mexico’s peso rose for the first time in four days as a report showed confidence among U.S. small businesses climbed last month, boosting the outlook for the Latin American country’s biggest trading partner.
The currency appreciated 0.2 percent to 12.1365 per U.S. dollar at 10:07 a.m. in Mexico City, extending its rally this year to 5.9 percent, the biggest among 16 major currencies tracked by Bloomberg.
The peso followed U.S. equities higher as the National Federation of Independent Business’s optimism index increased to 92.1 last month from 89.5 in March, the biggest advance since October 2010. Mexico sends about 80 percent of its exports to its northern neighbor. The Standard & Poor’s 500 Index headed for a record high.
“Today U.S. markets are approaching new highs on growth optimism, and the Mexican peso is rebounding in line,” Bernd Berg, a currency strategist at Credit Suisse Group AG in Zurich, said in an e-mailed response to questions.
Yields on peso bonds due in 2022 were little changed at 4.59 percent, according to data compiled by Bloomberg. The price declined 0.07 centavo to 114.21 centavos per peso.
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