Mexico’s peso rose to a 20-month high amid speculation lawmakers are moving closer to approving a bill to boost competition in the telecommunications industry, fueling optimism for legal reforms that could bolster growth.
The peso increased 0.3 percent to 12.1135 at 8:43 a.m. in Mexico City, the strongest level on a closing basis since Aug. 9, 2011. Its 6.1 percent gain against the dollar in 2013 is the best performance among the 16-most traded currencies tracked by Bloomberg. The peso is up 22 percent against Japan’s yen this year.
Senate committees plan to vote on legislation that would ease dominance of companies in telecommunications and broadcasting by April 18, the upper house’s press office said in an e-mailed statement last night.
A version of the bill, which is part of a package of measures to boost growth, passed the lower house last month. The peso slumped earlier as minutes from the most recent U.S. policy maker meeting showed several members of the Federal Open Market Committee said the central bank should stop its bond buying program by year end.
“Although the tone of the FOMC has hurt risk in general, Mexico’s peso got some relief from good news on the telecom bill front,” Eduardo Suarez, a Latin America currency strategist at Bank of Nova Scotia in Toronto, wrote in an e-mailed response to questions.
“Ultimately, the combination of reform momentum and global liquidity will win.”
Optimism that the telecommunications bill will pass rose after CNNExpansion reported that an opposition senator would back portions of the proposal for a new industry regulatory agency, Suarez said.
President Enrique Pena Nieto said over the weekend that Mexico’s economy could expand 6 percent if lawmakers approve the reforms outlined by the nation’s three biggest political parties in the so-called Pact for Mexico on Dec. 2, according to an article from news agency Notimex published on the website of CNNExpansion on April 7.
The yield on Mexico’s peso bonds due in 2024 was little changed at 4.75 percent today, according to data compiled by Bloomberg. The price fell 0.08 centavo to 147.01 centavos per peso.
bloomberg.com
The peso increased 0.3 percent to 12.1135 at 8:43 a.m. in Mexico City, the strongest level on a closing basis since Aug. 9, 2011. Its 6.1 percent gain against the dollar in 2013 is the best performance among the 16-most traded currencies tracked by Bloomberg. The peso is up 22 percent against Japan’s yen this year.
Senate committees plan to vote on legislation that would ease dominance of companies in telecommunications and broadcasting by April 18, the upper house’s press office said in an e-mailed statement last night.
A version of the bill, which is part of a package of measures to boost growth, passed the lower house last month. The peso slumped earlier as minutes from the most recent U.S. policy maker meeting showed several members of the Federal Open Market Committee said the central bank should stop its bond buying program by year end.
“Although the tone of the FOMC has hurt risk in general, Mexico’s peso got some relief from good news on the telecom bill front,” Eduardo Suarez, a Latin America currency strategist at Bank of Nova Scotia in Toronto, wrote in an e-mailed response to questions.
“Ultimately, the combination of reform momentum and global liquidity will win.”
Optimism that the telecommunications bill will pass rose after CNNExpansion reported that an opposition senator would back portions of the proposal for a new industry regulatory agency, Suarez said.
President Enrique Pena Nieto said over the weekend that Mexico’s economy could expand 6 percent if lawmakers approve the reforms outlined by the nation’s three biggest political parties in the so-called Pact for Mexico on Dec. 2, according to an article from news agency Notimex published on the website of CNNExpansion on April 7.
The yield on Mexico’s peso bonds due in 2024 was little changed at 4.75 percent today, according to data compiled by Bloomberg. The price fell 0.08 centavo to 147.01 centavos per peso.
bloomberg.com
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