Mexico’s Peso Advances as U.S. GDP Growth Buoys Export OutlookJonathan Levin
Mexico’s peso advanced for the third time in four days after a report showed the U.S. economy grew with rising consumer spending, bolstering the prospects for exports from the Latin American nation.
The peso appreciated 0.2 percent to 13.3652 per U.S. dollar at 4 p.m. in Mexico City, according to data compiled by Bloomberg. The currency has slipped 2.5 percent this year.
The U.S. economy expanded at a 3.2 percent annualized pace in the fourth quarter, matching the median forecast in a Bloomberg survey, Commerce Department figures showed today in Washington. Growth in the second half of 2013 was the strongest since the six months ended in March 2012. Mexico sends about 80 percent of its exports to the U.S.
“At the end of the day that benefits the Mexican economy on the export side,” Rafael Camarena, an economist for Grupo Financiero Santander Mexico SAB, said in a telephone interview from Mexico City.
U.S. consumer spending rose 3.3 percent.
Yields on peso bonds due in 2024 rose seven basis points, or 0.07 percentage point, to 6.65 percent today, according to data compiled by Bloomberg. The price fell 0.68 centavo to 125.79 centavos per peso.