Mexico’s peso rose as a pledge from European Central Bank President Mario Draghi to keep rates low eased concern that near-zero borrowing costs in developed nations were set to increase.
The currency climbed 0.6 percent to 12.8790 per U.S. dollar at 9:13 a.m. in Mexico City, the strongest level on a closing basis since June 17.
Yields on government bonds maturing in 2024 fell two basis points, or 0.02 percentage point, to 5.80 percent.
The peso rose along with most emerging-market currencies as Draghi said ECB policy makers expect to keep interest rates low for an “extended period.”
Global investors have been dumping the country’s debt since May amid speculation the Federal Reserve is poised to taper monetary stimulus that’s helped fuel demand.
“It’s possible that you can expect higher rates in the U.S. in 2014, but it’s still a ways away,” Ramon Cordova, a trader at Banco Base SA in San Pedro Garza Garcia, Mexico, said in a telephone interview.
“In the U.S. and Europe, there aren’t signs that you’re going to raise rates over that period.”
Markets in the U.S., Mexico’s biggest trading partner, are closed today for that country’s Independence Day holiday.
bloomberg.com
The currency climbed 0.6 percent to 12.8790 per U.S. dollar at 9:13 a.m. in Mexico City, the strongest level on a closing basis since June 17.
Yields on government bonds maturing in 2024 fell two basis points, or 0.02 percentage point, to 5.80 percent.
The peso rose along with most emerging-market currencies as Draghi said ECB policy makers expect to keep interest rates low for an “extended period.”
Global investors have been dumping the country’s debt since May amid speculation the Federal Reserve is poised to taper monetary stimulus that’s helped fuel demand.
“It’s possible that you can expect higher rates in the U.S. in 2014, but it’s still a ways away,” Ramon Cordova, a trader at Banco Base SA in San Pedro Garza Garcia, Mexico, said in a telephone interview.
“In the U.S. and Europe, there aren’t signs that you’re going to raise rates over that period.”
Markets in the U.S., Mexico’s biggest trading partner, are closed today for that country’s Independence Day holiday.
bloomberg.com
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