Mexico’s peso fell for the first time in four days as speculation that U.S. lawmakers will miss a deadline to raise the nation’s debt limit rekindled concern that economic growth will slow in the country’s top export market.
The currency slumped 0.5 percent to 13.0623 per U.S. dollar at 10:07 a.m. in Mexico City after climbing on Oct. 11 to the strongest level since Sept. 24.
The peso has slumped 1.6 percent this year. Mexico’s currency fell today as U.S. Senate leaders sought to reach agreement on how to end the fiscal impasse before the government’s borrowing authority lapses on Oct. 17.
The partial shutdown of the U.S. government entered its third week, adding to concern that growth in Latin America’s second-biggest economy will falter. Mexico sends 80 percent of its exports to its northern neighbor.
“Hoping for an agreement, they got rid of long positions” in the U.S. dollar, Eduardo Rodriguez, a trader at Casa de Bolsa Finamex SAB, said in a telephone interview from Guadalajara, Mexico. “As there wasn’t one, they came back and it puts a little pressure” on the peso.
The congressional deadlock in negotiations to raise the debt ceiling from $16.7 trillion is threatening the U.S. and world economies, said International Monetary Fund Managing Director Christine Lagarde.
Yields on Mexico’s peso bonds due in December 2024 were little changed at 5.89 percent today, according to data compiled by Bloomberg.
bloomberg.com
The currency slumped 0.5 percent to 13.0623 per U.S. dollar at 10:07 a.m. in Mexico City after climbing on Oct. 11 to the strongest level since Sept. 24.
The peso has slumped 1.6 percent this year. Mexico’s currency fell today as U.S. Senate leaders sought to reach agreement on how to end the fiscal impasse before the government’s borrowing authority lapses on Oct. 17.
The partial shutdown of the U.S. government entered its third week, adding to concern that growth in Latin America’s second-biggest economy will falter. Mexico sends 80 percent of its exports to its northern neighbor.
“Hoping for an agreement, they got rid of long positions” in the U.S. dollar, Eduardo Rodriguez, a trader at Casa de Bolsa Finamex SAB, said in a telephone interview from Guadalajara, Mexico. “As there wasn’t one, they came back and it puts a little pressure” on the peso.
The congressional deadlock in negotiations to raise the debt ceiling from $16.7 trillion is threatening the U.S. and world economies, said International Monetary Fund Managing Director Christine Lagarde.
Yields on Mexico’s peso bonds due in December 2024 were little changed at 5.89 percent today, according to data compiled by Bloomberg.
bloomberg.com
No comments:
Post a Comment