Mexico’s peso volatility dropped to its lowest level since September 2008 as investors awaited further evidence that Latin America’s second-biggest economy is picking up momentum.
Three-month historical volatility, a measure of the peso’s fluctuations, dropped for a 21st straight day, falling to 6.95 percent at 10:46 a.m. in Mexico City, according to data compiled by Bloomberg. The stretch of decreases is the longest since September 2012.
The currency was little changed at 12.9515 per U.S. dollar. While a report today showing that Mexico’s manufacturing rose at the fastest pace in two years is a positive sign, traders are still waiting for more evidence of a recovery, according to Roberto Galvan, a trader at Intercam Casa de Bolsa SA.
Finance Minister Luis Videgaray is trying to convince investors that constitutional changes opening Mexico’s energy industry will spur a rebound in the economy, which last year grew at the slowest pace since 2009.
“We hope that the finance minister is right,” Galvan said in a telephone interview from Mexico City. “The vast majority of market participants see a stronger peso, but it hasn’t solidified.”
The yield on peso securities maturing in 2024 climbed two basis points, or 0.02 percentage point, to 6 percent. The price fell 0.24 centavo to 131.26 centavos per peso.
The national statistics agency reported today that Mexico’s manufacturing production rose 6.8 percent in March from a year earlier, the biggest increase since since February 2012. The median forecast of economists surveyed by Bloomberg was for a 5.5 percent increase.
bloomberg.com
Three-month historical volatility, a measure of the peso’s fluctuations, dropped for a 21st straight day, falling to 6.95 percent at 10:46 a.m. in Mexico City, according to data compiled by Bloomberg. The stretch of decreases is the longest since September 2012.
The currency was little changed at 12.9515 per U.S. dollar. While a report today showing that Mexico’s manufacturing rose at the fastest pace in two years is a positive sign, traders are still waiting for more evidence of a recovery, according to Roberto Galvan, a trader at Intercam Casa de Bolsa SA.
Finance Minister Luis Videgaray is trying to convince investors that constitutional changes opening Mexico’s energy industry will spur a rebound in the economy, which last year grew at the slowest pace since 2009.
“We hope that the finance minister is right,” Galvan said in a telephone interview from Mexico City. “The vast majority of market participants see a stronger peso, but it hasn’t solidified.”
The yield on peso securities maturing in 2024 climbed two basis points, or 0.02 percentage point, to 6 percent. The price fell 0.24 centavo to 131.26 centavos per peso.
The national statistics agency reported today that Mexico’s manufacturing production rose 6.8 percent in March from a year earlier, the biggest increase since since February 2012. The median forecast of economists surveyed by Bloomberg was for a 5.5 percent increase.
bloomberg.com
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