Mexico’s Peso Gains as U.S. Manufacturing Fuels Export Optimism
Mexico’s peso advanced for the first time in three days as better-than-forecast growth in a U.S. manufacturing gauge buoyed prospects for the Latin American nation’s biggest export market.
The Markit Economics preliminary index of U.S. manufacturing increased to 56.7 in February, surpassing economists’ estimates. Labor Department figures indicated fewer Americans filed applications for unemployment benefits last week. Mexico sends 80 percent of its exports to the U.S.
“With the weakening in the last two days, it could have generated profit taking” from investors betting on the dollar against the peso, Juan Carlos Alderete, a strategist with Grupo Financiero Banorte SAB, said in a telephone interview from Mexico City.
Yields on peso bonds due in 2024 fell three basis points, or 0.03 percentage point, 6.42 percent today, according to data compiled by Bloomberg. The price rose 0.23 centavo to 127.79 centavos per peso.
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