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Thursday, August 27, 2009
Mexico’s peso rose to its highest level since November amid speculation the global recession is easing, boosting global stocks and stoking investors appetite for the nation’s financial assets.The currency strengthened 0.1 percent to 12.8152 per U.S. dollar at 10:44 a.m. New York time, from 12.833 on Aug. 21. Earlier it touched 12.7674, the strongest since Nov. 11.
“The peso is at very strong levels and it will likely continue to gain,” said Alejandro Hernandez, who oversees about $1 billion in fixed-income assets at Grupo Financiero Interacciones SA in Mexico City. “Stocks continue to rise and economic data looks good.”
The peso led gains in Latin American currencies. Stocks in the U.S. and Europe advanced as Federal Reserve Chairman Ben S. Bernanke and European Central Bank President Jean-Claude Trichet, speaking at the annual central bankers’ symposium in Jackson Hole, Wyoming, said the world economy is pulling out of recession.
“As long as U.S. growth is on track for a recovery, then there are reasons to be optimistic about Mexico,” Benito Berber, an economist at RBS Greenwich Capital Markets in Greenwich, Connecticut wrote in a report today. Mexico sends 80 percent of its exports to the U.S.
Yields on Mexico’s 10 percent bond were little changed at 8.43 percent, according to Banco Santander SA. The price rose 0.02 centavo to 113.42 centavos per peso.
Mexico’s consumer prices rose 0.11 percent in the first half of August, the central bank said today. That’s less than the 0.2 percent median forecast in a Bloomberg News survey of 14 economists.
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