Mexican Peso Rises for Third Straight Day as Unemployment Falls

Mexico’s peso climbed for a third straight day after a report showed lower-than-forecast unemployment in February, indicating that Latin America’s second-largest economy is gaining strength.

The currency appreciated 0.4 percent to 13.1779 per U.S. dollar today, according to data compiled by Bloomberg. Local bonds due in 2024 climbed 0.17 centavo to 128.93 centavos per peso. Yields fell two basis points, or 0.02 percentage point, to 6.28 percent.

The peso posted the best performance among major Latin American currencies today after the national statistics agency reported that the unemployment rate fell last month to 4.65 percent, lower than the 4.9 percent median forecast of economists surveyed by Bloomberg.

“It was very good data,” Roberto Galvan, a trader at Intercam Casa de Bolsa SA, said in a telephone interview from Mexico City. The lower unemployment rate helps signal the rebound of the Mexican economy, he said.

The gain in the peso was limited as an inflation report indicated that the Bank of Mexico may keep the target lending rate at a record low 3.5 percent, Galvan said.

Annual inflation slowed in early March to 3.89 percent, within the 4 percent upper limit of the central bank’s target range for the first time since December.

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