| | |  Business News | January 2009 
Mexican Peso Rises for First Time in 3 Days on U.S. Jobs Report
 Valerie Rota - Bloomberg
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 |  | The report has relieved some concerns of a dismal December reading and has in the near term improved investors’ appetite for risk.
- Omer Esiner |  | | |
Mexico’s peso rose for the first time in three days after a U.S. government report showed job losses last month were in line with forecasts.
The report “has relieved some concerns of a dismal December reading and has in the near term improved investors’ appetite for risk,” said Omer Esiner, a senior market foreign-exchange analyst in Washington at Ruesch International Inc., a currency trading company.
The peso advanced 0.6 percent to 13.5983 per dollar at 9:33 a.m. New York time, from 13.6772 yesterday. It strengthened 1.2 percent this week.
Employers in the U.S., Mexico’s biggest trading partner, cut 524,000 jobs in December, 1,000 fewer than the median forecast in a Bloomberg survey.
The decline marked the 12th straight month of job losses, making it the worst year for employment since the end of World War II and underscored the severity of the recession.
Concern that a deteriorating U.S. job market will further trim demand for Mexican exports will make gains in the peso short-lived, said Esiner, who is forecasting the peso will trade between 13.4 and 13.9 per dollar this month.
“This is a knee-jerk reaction,” he said. “The market is going to realize that the U.S. jobs situation is going to keep deteriorating.”
Yields on Mexico’s 10 percent bond due December 2024 fell for an eighth straight day, dropping nine basis points, or 0.09 percentage point, to 7.66 percent. The bond’s price rose 0.97 centavo to 121.45 centavos per peso, according to Banco Santander SA.
To contact the reporter on this story: Valerie Rota in Mexico City at vrota1(at)bloomberg.net. |
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