Mexico’s peso dropped the most in Latin America as signs global growth is accelerating spurred speculation that the U.S. Federal Reserve will move quickly to cut U.S. monetary stimulus.
The currency fell 0.7 percent to 13.1752 per U.S. dollar at 10:02 a.m. in Mexico City. Yields on peso bonds due in 2024 rose five basis points, or 0.05 percentage point, to 6.49 percent, according to data compiled by Bloomberg.
The price declined 0.43 centavo to 127.418 centavos per peso. The peso fell along with other emerging-market currencies as reports showing improvement in the global economy damped speculation that the Fed will ease decreases of monthly bond purchases after last month’s $10 billion reduction.
The World Bank raised its global growth estimate, saying a recovery in advanced economies will temper the impact of tighter monetary conditions. A report in the U.S. showed manufacturing in the New York region expanded more than forecast.
“For better or worse, the U.S. economy doesn’t appear to be in such bad shape after the last data that we saw,” Agustin Villarreal, fixed-income and foreign-exchange director at Grupo Financiero Invex SA in Mexico City, said by phone.
The Washington-based World Bank sees the world economy expanding 3.2 percent this year, compared with a June projection of 3 percent and up from an estimated 2.4 percent in 2013.
Mexico will expand 3.4 percent this year after growing an estimated 1.4 percent in 2013, according to the World Bank.
bloomberg.com
The currency fell 0.7 percent to 13.1752 per U.S. dollar at 10:02 a.m. in Mexico City. Yields on peso bonds due in 2024 rose five basis points, or 0.05 percentage point, to 6.49 percent, according to data compiled by Bloomberg.
The price declined 0.43 centavo to 127.418 centavos per peso. The peso fell along with other emerging-market currencies as reports showing improvement in the global economy damped speculation that the Fed will ease decreases of monthly bond purchases after last month’s $10 billion reduction.
The World Bank raised its global growth estimate, saying a recovery in advanced economies will temper the impact of tighter monetary conditions. A report in the U.S. showed manufacturing in the New York region expanded more than forecast.
“For better or worse, the U.S. economy doesn’t appear to be in such bad shape after the last data that we saw,” Agustin Villarreal, fixed-income and foreign-exchange director at Grupo Financiero Invex SA in Mexico City, said by phone.
The Washington-based World Bank sees the world economy expanding 3.2 percent this year, compared with a June projection of 3 percent and up from an estimated 2.4 percent in 2013.
Mexico will expand 3.4 percent this year after growing an estimated 1.4 percent in 2013, according to the World Bank.
bloomberg.com
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