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 Finance Minister Luis Videgaray said public investment spending grew 14.2 percent in 2013, a sign that the government is correcting expenditure delays that hurt the economy, according to Citigroup Inc.
Mexico’s peso bonds rallied, pushing yields down the most in four weeks, and the currency rose as a U.S. agreement pushed a budget battle that damped demand for the Latin American nation’s debt into early next year.