Mexican Peso Posts Longest Rally Since November on U.S. Outlook
The Mexican peso climbed for a fifth day in the longest rally since November after U.S. employers added jobs at the fastest pace in two years in April, boosting the outlook for Mexico’s biggest trading partner.
The currency advanced 0.2 percent to 13.0151 per dollar in Mexico City today, the strongest level since April 9.
The 288,000 increase in U.S. payrolls was the biggest since January 2012 and helped push the unemployment rate to the lowest in more than five years, Labor Department figures showed today in Washington. The median forecast among economists surveyed by Bloomberg called for a 218,000 jump in payrolls.
“Recent data show U.S. growth re-accelerating,” Bill Adams, a senior international economist at PNC Financial Services Group in Pittsburgh, which oversees $127 billion in assets, said by phone. “A stronger U.S. economy means a better market for Mexican exports.”
While the Mexican peso will probably weaken with other emerging-market currencies as the Federal Reserve tightens monetary policy and reduces liquidity, the country is better insulated than peers against global volatility, Adams said.
The yield on peso bonds maturing in 2024 dropped five basis points, or 0.05 percentage point, to 6.18 percent. The price climbed 0.49 centavo to 129.63 centavos per peso.
To contact the editors responsible for this story: Brendan Walsh at firstname.lastname@example.org Richard Richtmyer