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Mexico’s Peso Rises After U.S. Payrolls Decline Unexpectedly
 Ye Xie - Bloomberg
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January 08, 2010
Mexico’s peso rose to a three-week high and headed for its biggest weekly advance in eight months after the U.S. unexpectedly lost jobs in December.
The U.S. dollar declined today against 15 of the 16 most- actively traded currencies tracked by Bloomberg News. The peso was the best performer among the major currencies this week, rising 2.3 percent against the Brazilian real.
“As the dollar weakened, the emerging market currencies strengthened,” said Nick Chamie, global head of emerging markets at RBC Capital Markets in Toronto. “Generally, we remain positive on emerging markets, including Mexico, as the global economy is onto a recovery, and major central banks are in no hurry to raise interest rates.”
The peso climbed 0.6 percent to 12.6980 per U.S. dollar at 9:41 a.m. New York time, from 12.7854 yesterday. It earlier touched 12.6873, the highest since Dec. 16. The peso gained 3.1 percent this week, the biggest five-day advance since the period ended May 8.
U.S. payrolls decreased by 85,000 last month, after a revised increase of 4,000 in November, which was the first gain in almost two years, the Labor Department reported. A Bloomberg News survey of 76 economists forecast no change in December employment. The jobless rate held at 10 percent.
The yield on Mexico’s benchmark bond fell one basis point, or 0.01 percentage point, to 8.25 percent. The price of the 10 percent security due in December 2024 rose 0.11 centavo to 114.95 centavos per peso, according to Banco Santander SA.
To contact the reporter on this story: Ye Xie in New York at yxie6(at)bloomberg.net
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