Mexico’s peso rose for the first time in five days as benchmark bonds snapped their longest losing streak since November 2010 amid speculation the Federal Reserve will maintain its pace of monetary stimulus.
Mexico’s peso plunged as industrial production fell three times more than analysts forecast in March, stoking speculation that policy makers will cut borrowing costs in Latin America’s second-biggest economy.
Mexico’s bond yields fell to their lowest level since July, extending last week’s tumble, after policy makers signaled that slowing inflation may prompt them to cut benchmark rates for the first time in three years.
Cemex SAB, the largest cement maker in the Americas, is selling asset-backed debt for the first time in two years to obtain lower yields as slumping demand for building materials drives up its benchmark borrowing costs.
Mexico’s peso dropped as factory output in the New York region shrank more than forecast in December, fueling concern about weakness among manufacturers in the Latin American country’s biggest trading partner.