Mexico’s Currency Advances as Economy Expands More Than Forecast
Mexico’s peso rose for the first time in three days as a government report showed that Latin America’s second-largest economy expanded more than forecast in the third quarter.
The peso strengthened 0.3 percent to 13.0588 per U.S. dollar at 10:21 a.m. in Mexico City after falling as much as 0.4 percent. It has declined 0.9 percent in five days, the worst performance after Japan’s yen among 16 major currencies.
Gross domestic product expanded 1.3 percent in the third quarter from a year earlier, the national statistics agency reported today. The median estimate of 20 economists surveyed by Bloomberg was for growth of 1 percent.
“The GDP gave it a bit of a lift,” Eduardo Suarez, a Latin America strategist at Bank of Nova Scotia in Toronto, said in an e-mailed response to questions.
The yield on peso bonds due in 2024 increased seven basis points, or 0.07 percentage point, to 6.24 percent, according to data compiled by Bloomberg. The price fell 0.73 centavo to 129.91 centavos per peso.
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