Mexico’s Peso Declines to Weakest Since February on Fed Concern

September 30, 2014

09/29/14 Bloomberg

financeMexico’s peso dropped to its lowest in almost eight months as concern the U.S. Federal Reserve will raise interest rates next year overshadowed optimism that changes in the Latin American nation’s energy laws will boost growth. The currency fell 0.4 percent to 13.4990 per U.S. dollar at 1:26 p.m. in Mexico City, the weakest on a closing basis since Feb. 3. The peso has lost 3.9 percent since June, which would mark the biggest quarterly decline since June 2013. “The Fed trumps all,” Eduardo Suarez, a foreign-exchange strategist at Bank of Nova Scotia, said in a telephone interview from Toronto. “There’s a general risk-off movement.”

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Mexico edging Canada in neighbourhood rivalry

May 27, 2014
Photo by Guanatos Gwyn

Photo by Guanatos Gwyn

Financial Times, 5/27/14

Two countries, both linked to the US economically and geographically.

But in a battle between the currencies of Canada and Mexico, it is the peso which many analysts favour.

They are not overly negative the Loonie, per se. As Citi points out, rate cut fears have abated as inflation steadies; the country has “recently shifted to a fiscal surplus, a first since 2008”; net foreign buying of Canadian equities is at cyclical highs.

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Mexico Peso Posts Weekly Decline Amid Energy Law Rules Impasse

April 14, 2014

currency - coinsBloomberg, 4/11/14

Mexico’s peso posted its biggest weekly drop since January as the country’s political parties wrangled over rules for opening up the energy industry, fueling concern that so-called secondary laws may be delayed. The currency weakened 0.3 percent this week to 13.0425 per dollar according to data compiled by Bloomberg. It was the biggest weekly slump since Jan. 24 after the peso rose 0.2 percent today.

While analysts surveyed by Bloomberg had forecast that the peso would gain an emerging-market best 3.6 percent this year as growth in Latin America’s second-biggest economy quickened, the currency is little changed this year as expansion flounders. Juan Bueno, a lawmaker from the opposition National Action Party, known as the PAN, said in an interview this week that his party hadn’t yet reached an agreement with President Enrique Pena Nieto’s government on oil regulators

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Mexican peso at crossroads between reform rally, Fed taper

July 19, 2013

financeReuters, 7/18/2013

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.

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Mexico Peso Falls as Europe Bailout Delays Stokes Growth Concern

July 16, 2012

Bloomberg, 07/16/2012

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.

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Mexico Stocks, Peso Under Pressure on Rising Spanish Bond Yields

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).

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Mexico’s peso continues to recover, analysts dismiss speculation politics triggered slide

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.

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