Mexico’s Peso Declines Amid Federal Reserve Tapering ConcernJonathan Levin
Mexico’s peso fell amid concern the Federal Reserve will reduce stimulus that’s provided demand for higher-yielding developing-market securities.
The peso fell 0.7 percent to 12.4211 per U.S. dollar at 4 p.m. in Mexico City. The currency has advanced 3.5 percent this year, the most among 16 major dollar counterparts tracked by Bloomberg.
The peso reversed earlier gains after Fed Chairman Ben S. Bernanke said the flow of bond purchases will slow as the jobs outlook “improves in a real and sustainable way.” A number of officials said they were willing to taper stimulus as early as June, minutes from the Fed’s last meeting showed today.
Yields on peso bonds due in 2024 rose 16 basis points, or 0.16 percentage point, to 4.93 percent today, according to data compiled by Bloomerg. The price fell 1.88 centavos to 144.64 centavos per peso.