Mexico Peso Retreats as World Bank Lowers Economic Growth ViewJonathan J. Levin
Mexico’s peso’s fell after the World Bank lowered its 2013 growth forecast for Latin America’s second-biggest economy.
The peso fell 0.1 percent to 12.6215 per U.S. dollar at 4 p.m. in Mexico City, paring its rally in January to 1.8 percent, still the biggest among 16 major currencies.
Mexico’s economy will grow 3.3 percent in 2013, the World Bank forecast yesterday, compared with a June projection of 4 percent expansion. Growth is projected to trail Brazil, the region’s biggest economy, for the first time in three years. The Washington-based World Bank also cut its global growth forecast, saying the world economy will expand 2.4 percent in 2013, down from a June projection of 3 percent.
Demand for the peso fell today amid “a bit of concern about global economic risks,” Alejandro Urbina, who helps oversee about $800 million in emerging-market assets at Silva Capital Management in Chicago, said in an e-mailed statement. “It was just not a risk-on day” for many emerging-market currencies.
Yields on Mexico’s peso bonds due in 2024 rose one basis point, or 0.01 percentage point, to 5.42 percent, according to data compiled by Bloomberg. The price dropped 0.17 centavo to 140.10 centavos per peso.