The Mexican peso’s foreign exchange rate for the first time in four days after slower than forecast Chinese export growth boosted concern about the world economy and the global appetite for goods from the Latin American country.
The Mexican peso declined 0.3 percent to 12.6844 per US dollar at 1:48 p.m. in Mexico City, from 12.6425 on March 9. It’s risen 9.9 percent this year, the most among major Latin American currencies.
China reported the biggest trade deficit in at least 22 years on March 10, damping confidence in global economic growth that had been spurred by higher than forecast US jobs data last week. The peso is slumping as the Chinese data adds to concern about the US economy, the destination for 80 percent of Mexican exports, according to Pedro Tuesta, a Washington based Latin America economist at 4Cast Inc.
“This is not a compartmentalized thing,” Tuesta said by phone. “Mexico is very exposed to trade. Mexico’s market grows because the external market grows.”
Latin America’s second-biggest economy may expand closer to 4 percent this year, rather than the 3.5 percent the government has forecast, should the US economy keep improving, central bank Governor Agustin Carstens said last month in Mexico City.
The yield on the country’s peso denominated debt due in 2024 was little changed at 6.38 percent, according to data.