Mexico’s Peso Sinks After Retail Sales Fall Most in Three YearsBen Bain
Mexico’s peso fell as a report showed retail sales fell the most in three years in February, damping the outlook for the country’s economic expansion.
The currency depreciated 0.6 percent to 12.3414 per dollar at 9:10 a.m. in Mexico City for the biggest decline on a closing basis since April 15. The drop pared the rally in 2013 to 4.1 percent, still the biggest gain among the greenback’s 16 major counterparts tracked by Bloomberg.
The national statistics agency said that Mexico’s retail sales fell 2.6 percent from a year earlier in February, the biggest drop since October 2009. Expansion in Latin America’s second-biggest economy will slow to 3.55 percent this year, according to the median forecast of analysts surveyed by Bloomberg, after growing by 3.9 percent in 2011 and 2012.
Yields on Mexico’s peso bonds due in 2024 fell four basis points, or 0.04 percentage point, to 4.57 percent, according to data compiled by Bloomberg. It’s an all-time low on a closing basis. The price rose 0.37 centavo to 148.99 centavos.