Forex News

The Mexican peso had another day of advance as commodities rose globally and speculations that foreign investors will purchase the nation’s bonds helped the Latin American currency to extend its rally for another day in foreign-exchange markets.

The trading scenario this Thursday was entirely against the Mexican currency, which faced worse-than-expected data coming from the U.S., its main trading partner, and a strong sentiment of pessimism as European public accounts are deteriorating.

The Mexican peso is benefiting from the U.S. economic outlook for 2010, as Mexico has the U.S. as the main destination for its exports, both raw and manufactured, and an accelerated growth of its neighbor is helping Mexico’s currency to gain in foreign-exchange markets.

The Mexican currency had a winning performance versus several important currencies as stocks rallied on speculations that the Latin American economy will recover faster than other emergent markets.

After a series of positive domestic reports, the Mexican currency extended its previous gains climbing further versus the U.S. dollar as investors are more confident to invest in the Latin American nation.

The Mexican peso rose after Fitch Ratings finally ended a speculations drama and cut the country’s rating one level, making the peso to grow as currently it is one of the cheapest currencies among emergent markets.

The Mexican peso had a positive performance today versus the greenback as interest rates are unlikely to have further cuts, attracting investors to inject capital in the North American country.

The Mexican peso had a negative day losing versus most of 16 main traded currencies as the national congress approved new tax regulations that may affect Mexican assets attractiveness, shunning investors from the Latin American nation.

A decline in crude oil rates forced down a basket of currencies which are originally from oil exporter countries, which is the case for the Mexican peso, continuing a losing streak versus the U.S. dollar that started as risk aversion emerged this week.

After a part of the 2010 budget was approved by the government, confidence towards the Mexican economy improved, attracting investors to the Latin American emergent market and influencing positively the peso rates.