July 19, 2013
For those who like volatility, there’s money to be made on the Mexican peso. It could rally on the hopes of a more robust future for Latin America’s second-biggest economy. Or it might get hammered by U.S. Federal Reserve policy moves. Maybe both will happen in the next six months.
While other regional economies are suffering from China’s slowing demand for commodities, Mexico is humming along. Factory exports to the United States are seen picking up and a series of economic reforms has investors seeing a brighter future.
July 16, 2012
Mexico’s peso fell after a German court said it would take more than eight weeks to rule on the euro-area’s permanent bailout fund, fueling concern that the region’s debt crisis will take longer to be resolved.
Speculation that slowing global growth will hurt the market for Mexican exports helped make the peso Latin America’s worst- performing major currency in 2011.
July 9, 2012
The Wall Street Journal, 07/09/2012
Mexican stocks opened lower Monday on continued concerns about the health of the global economy, as rising Spanish borrowing costs furthered concerns about Europe’s debt crisis.
The IPC index of Mexico’s most-traded shares was recently down 101 points, or 0.3%, to 39731 on volume of 4.5 million shares valued at 114 million pesos ($8.5 million).
June 6, 2012
Associated Press, 6/5/2012
Mexico’s peso continued to recover Tuesday from its steep drop last week, as experts denied the resurgence of a leftist candidate in polls on the July 1 presidential race had anything to do with the decline.
On Tuesday, Rogelio Ramirez, an economist and adviser to Lopez Obrador, issued a statement saying that some news media “attributed the weakening (of the peso) to the polls, without any further evidence.
May 22, 2012
Mexico’s peso reached the strongest level in a week on speculation European leaders will step up efforts to support global growth, encouraging demand for the Latin American nation’s higher-yielding assets.
The currency was little changed at 13.6929 per dollar at 8:29 a.m. in Mexico City after earlier appreciating to 13.6650, the strongest level since May 15. The peso has gained 1.7 percent this year.
Mexico’s gross domestic product will expand 3.7 percent this year, according to a survey of economists released yesterday by Citigroup Inc.’s Banamex unit. The economy was expected to expand 3.5 percent this year in the previous biweekly survey.
May 16, 2012
The Wall Street Journal, 5/16/12
Mexico’s peso closed stronger against the U.S. dollar Wednesday as Bank of Mexico Governor Agustin Carstens said the currency is anchored by fundamentals, and should appreciate once financial turmoil eases.
The peso was quoted closing in Mexico City at MXN13.765 to the U.S. dollar, according to Infosel, compared with MXN13.816 at the close Tuesday. The currency opened weaker as worries about the possibility of Greece leaving the euro zone kept investors averse to risk, but recovered ground during the session.
Speaking at a press conference, Carstens said the peso is weaker than it should be, but added that the central bank sees no need to revise the dollar-sale mechanism under which it stands ready to sell dollars if the peso depreciates 2% in a single day.
April 30, 2012
The Wall Street Journal, 4/30/12
The Mexican peso retreated against the U.S. dollar Monday while still holding on to much of the gains it made in the previous session after the Bank of Mexico decided to leave its overnight lending rate target at 4.5%.
The peso was quoted closing in Mexico City at MXN13.0275 to the dollar compared with its Friday close of MXN12.9750, which was also the currency’s strongest finish against the dollar since April 9. Still, the peso’s 0.4% pullback Monday erased only a modest portion of the currency’s 1.5% gain against the dollar Friday.
“Mexican peso bulls have been trimming back positions in recent weeks and were caught wrong-footed at the end of the week when the Mexican peso rose to its best level in three weeks…amid general dollar weakness and the decision by the central bank to keep rates steady (in the face of speculation of a rate cut),” Brown Brothers Harriman said in a report.
April 23, 2012
Mexico’s largest mortgage provider plans to offer home buyers fixed-rate loans for the first time, as the two-decade long inflationary hangover from the country’s Tequila Crisis fades.
A legal overhaul will let Mexicans who finance their homes with state-controlled Infonavit, the company founded in 1972 to give workers access to home financing, get the 30-year mortgages for the first time as soon as June. The lender, which has made about 4.4 million loans since 2001, also plans to issue mortgage-backed securities in pesos next year to match income with obligations, the first such sales since 2004.
President Felipe Calderon’s government is taking advantage of the second-lowest inflation rate among major Latin American economies to start providing the loans as it moves to tame a housing shortage afflicting 8.9 million families. Inflation has declined to 3.73 percent from 52 percent in 1995 when the peso’s devaluation sparked capital outflows across the region.
April 16, 2012
Wall Street Journal, 4/16/12
Mexican stocks were in negative territory early Monday after a series of erroneous trades pulled the market’s benchmark index sharply lower in the prior session’s final minutes of trade.
The IPC index of Mexico’s most-traded shares was recently down 133 points, or 0.3%, to 39004 points on volume of 26 million shares traded worth 720 million pesos ($55 million). The peso was also losing ground against the U.S. dollar, at MXN13.1995 compared with MXN13.1780 at the close Friday, as rising tensions in Europe continue to boost the greenback against major currencies.
Mexico’s stock exchange said the local brokerage house of Bulltick Capital Markets on Friday entered incorrect sell prices for 13 issues into the electronic trading system, which knocked the IPC index down by more than 770 points within a few minutes.
March 26, 2012
The Wall Street Journal, 2/26/12
Mexico’s peso closed stronger against the U.S. dollar Monday as investors were encouraged to buy stocks and other risky assets following positive European data and comments from U.S. Federal Reserve Chairman Ben Bernanke in favor of keeping interest rates low to support job growth.
The peso closed in Mexico City at MXN12.6640 to the dollar, according to Infosel, compared with MXN12.7480 at the close Friday. The improved risk appetite fed into the local stock market, where the benchmark IPC index rose 1.4% to a record high close, beating the previous record in January 2011.
Banorte-Ixe said in a report that it remains neutral on the peso in the near-term, while expecting the currency to gain in the remainder of the year, strengthening as far as MXN12.50 or even MXN12.30 in the third and fourth quarters, helped by the improving U.S. economy.