Mexico Peso Rises as Sign of U.S. Recovery Buoys OutlookBen Bain
Mexico’s peso climbed the most in a week as evidence of a U.S. economic recovery boosted the Latin America country’s export outlook.
The currency rose 0.3 percent to 13.0638 per U.S. dollar at 4 p.m. in Mexico City, the biggest gain on a closing basis since April 9, according to data compiled by Bloomberg.
The peso rallied as the U.S. Federal Reserve reported that factory production climbed 0.5 percent in March after a 1.4 percent surge in the prior month that marked the biggest increase in almost four years. Mexico sends about 80 percent of its exports to its northern neighbor.
“The correlation between the two industrial cycles is very strong,” Eduardo Suarez, a Latin America currency strategist at Bank of Nova Scotia, said by phone from Toronto.
The currency remained higher after Fed Chair Janet Yellen said in New York that the central bank has a “continuing commitment” to support the U.S. recovery even as policy makers now see the economy reaching full employment by late 2016.
Yields on peso bonds maturing in 2024 rose two basis points, or 0.02 percentage point, to 6.21 percent. Mexico’s markets are closed tomorrow and April 18 for holidays.