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.
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 tumbled to the weakest since July 2012 along with other emerging-market currencies as concern grew that China’s economic recovery will stall and Turkey failed in attempts to stave off a slide in its lira.
Mexico’s peso fell from a two-week high as a drop in U.S. jobless claims fueled speculation the Federal Reserve next week will begin to slow monetary stimulus that’s fueled demand for the Latin American nation’s securities.
Mexican President Enrique Pena Nieto said he’s negotiating support to break the state monopoly over oil and gas exploration and production this year to accelerate economic growth. The peso pared its loss.