Mexico’s Peso Advances as U.S. Durable Goods Buoy Export OutlookJonathan Levin
Mexico’s peso advanced to an 18-month high after orders for U.S. durable goods climbed more than economists forecast, bolstering the outlook for the Latin American nation’s biggest export market.
The peso climbed 0.2 percent to 12.3272 per U.S. dollar at 7:44 a.m. in Mexico City after touching 12.3079, the strongest intraday level since September 2011. The currency has risen 4.3 percent this year, the most among the dollar’s 16 major counterparts tracked by Bloomberg, after an 8.4 percent rally in 2012.
Orders for goods meant to last at least three years, including automobiles and commercial aircraft, rose 5.7 percent in February, a Commerce Department report showed today in Washington. The median forecast of 80 economists surveyed by Bloomberg called for a 3.9 percent advance. Mexico sends about 80 percent of its exports to the U.S.
“It’s in part the data,” said Ramon Cordova, a currency trader at Banco Base SA in San Pedro Garza Garcia, Mexico. “We’re extending the rally on a thin market ahead of the holidays.”
Mexico’s stock market will be closed March 28 and March 29 for Easter holidays.
Yields on government peso bonds due in 2024 were little changed at to 5.04 percent, according to data compiled by Bloomberg. The price fell 0.12 centavo to 143.78 centavos per peso.
Mexico’s central bank is scheduled to release its report on international reserves at 9 a.m. local time.