Mexican Peso Rallies as AMLO Resolves Airport Bond Dispute

  • Bondholders agreed ‘overwhelmingly’ to accept buyback offer
  • ‘It is a step in the right direction,’ says Ashmore’s Dehn
Construction of the New International Airport of Mexico City.Photographer: Brett Gundlock/Bloomberg
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The Mexican peso climbed as investors grew confident that President Andres Manuel Lopez Obrador will solve a standoff with airport bondholders that had roiled markets.

The peso gained 1.2 percent to a six-week high on Thursday after news that a majority of bondholders accepted Mexico’s offer to buy back $1.8 billion in debt used to fund the construction of an international airport that Lopez Obrador has said he’ll cancel.