Mexico’s Peso Rises to Almost Five-Month High on Growth OutlookBen Bain
Mexico’s peso rose to the highest in almost five months as investors speculated Latin America’s second-biggest economy is gaining steam.
The currency advanced 0.1 percent to 12.8980 per U.S. dollar at 4 p.m. in Mexico City, climbing for a second day to the strongest closing level on a closing basis since Dec. 18.
The national statistics agency reported May 12 that Mexico’s manufacturing production rose 6.8 percent in March from the same month in the prior year, the biggest increase since February 2012. Reports earlier in the year signaling growth was slower than expected had dragged on the peso, whose 1.1 percent increase in 2014 has lagged peers.
“In Mexico what you had was just a continuing trend of worse data than expected,” Alejandro Silva, a founding partner at Chicago-based Silva Capital Management LLC, said in a telephone interview. Recent indicators including the manufacturing report are showing “some green shoots.”
The yield on peso securities maturing in 2024 fell five basis points, or 0.05 percentage point, to 5.86 percent. The price rose 0.48 centavo to 132.56 centavos per peso.