Mexico’s peso rose to a seven-month high as a contraction in the U.S. economy fueled speculation that central banks will maintain monetary stimulus supporting demand for the Latin American country’s assets.
Mexico’s peso volatility fell for an 11th session, the longest stretch of declines since August 2010, as investors awaited a report on U.S. employment for clues on the Federal Reserve’s plans to cut monetary stimulus.
Mexican President Enrique Pena Nieto said he’s confident Congress will end the state oil monopoly this year, opening the way for companies such as Exxon Mobil Corp. and Royal Dutch Shell Plc to tap the nation’s reserves.
Mexico’s peso rose to a three-week high on speculation U.S. lawmakers will reach an agreement to end a fiscal impasse that has damped the outlook for the Latin American country’s biggest trading partner.
Mexico’s peso fell the most in Latin America as Federal Reserve officials predicted their target interest rate will rise to 1 percent at the end of 2015, potentially reducing the allure of higher-yielding Mexican assets.