Mexico’s Peso Tumbles to Weakest Since February on U.S. OutlookBen Bain
Mexico’s peso fell to the weakest since February as concern that the global economy is slowing fueled a selloff in emerging-market currencies.
The currency dropped 0.6 percent to 13.5315 per dollar today in Mexico City, the weakest on a closing basis since Feb. 3. Yields on fixed-rate peso bonds due in 2024 dropped five basis points, or 0.05 percentage point, to 5.76 percent, according to data compiled by Bloomberg.
The peso’s drop was the second-most among major currencies. A report showed retail sales in the U.S., which accounts for about 80 percent of Mexico’s exports, fell a greater-than-expected 0.3 percent in September. An index of manufacturing in the New York area fell this month to its lowest since April.
U.S. output “does seem to lead what happens in Mexican manufacturing,” Eduardo Suarez, a foreign-exchange strategist at Bank of Nova Scotia, said in a telephone interview from Toronto. “Most perceive that global policy makers are concerned about a potential downturn.”