Mexico's Peso fell for the second consecutive day of trading, as traders worried that the country's economy would be affected by economic troubles in the U.S., Mexico's major trading partner.
Another force driving the decline in Mexico's peso might be investor concern that Spain, Portugal and Greece will struggle to pay for their budget deficits, eroding demand for higher-yielding, emerging-market currencies. According to data from Bloomberg, Mexico’s bonds rose, pushing the benchmark yield to a two-month low.
“Risk aversion will continue for a while around the world,” undermining the peso, said Gerardo Margolis, vice president for emerging markets at a Toronto, Canada office of TD Securities Inc., a bank, told reporters.
Mexico's currency slid 0.8% to 13.0483 per U.S. dollar as of 10:07 a.m. New York time, from 12.95 yesterday, paring its gain this year to 0.3%.
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