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 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.
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 fell this quarter as President Enrique Pena Nieto’s push to bolster growth through legal reforms failed to overshadow concern about the U.S. economy and the Federal Reserve’s monetary stimulus.