Mexico’s industrial production fell three times more than analysts forecast in March, reinforcing expectations that the central bank will cut interest rates for the second time since 2009 later this year.
Mexico’s industrial production unexpectedly fell in December from the year earlier for the first time in three years. The peso weakened on speculation the central bank is more likely to reduce borrowing costs.
Mexico’s peso rose the most in a week as speculation that European leaders will make progress in resolving the region’s debt crisis fueled demand for the Latin American country’s higher-yielding assets.
Mexico’s peso rose to the strongest since August 2011 after a report showed faster-than-forecast inflation last month, damping speculation that policy makers will cut interest rates to slow the currency’s advance.
Mexico’s peso climbed, advancing for a third day after fewer Americans than forecast filed first- time claims for unemployment insurance, helping the prospects for the Latin American nation’s top export market.
Mexico’s local currency bond yields rose to a one-week high, following U.S. Treasuries, as speculation that the economic outlook for both countries is improving reduced demand from investors seeking a haven.