The Mexican peso advanced today as China pledged to boost its economic growth, reducing the negative impact of the crisis in Europe and increasing demand for riskier currencies with higher yield.
Chinese Premier Wen Jiabao promised to accelerate economic growth in China and that pledge improved market sentiment somewhat, benefiting currencies of emerging economies. China remains one of the few sources of good news nowadays. The United States is another, although optimism for its economy dimmed to a degree. Nevertheless, speculators expect some good figures in employment reports next week. Mexico’s prospects are good too as the nation’s economy expanded 4.6 percent in the first quarter from a year ago, demonstrating the fastest growth in six quarters.
USD/MXN was down from 13.8076 to 13.7738 as of 16:42 GMT today.
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