The Mexican IPC stock index closed 0.54 percent higher on Friday in low-volume trading at 27,132.79 points. In the equities market, traders said falling oil prices eased fears that high fuel costs would further undermine the economy in the United States, the destination for around 80 percent of Mexican exports.
Shares of America Movil, the largest cell phone operator in Latin America, gained 1.71 percent to 25.57 pesos. Cement maker Cemex, the world's No 3 cement maker, rose 2.46 percent to 21.70 pesos. Telmex, the country's biggest fixed-line phone company, rose 3.57 percent to 13.04 pesos.
Mexico's peso weakened sharply on Friday as the US dollar surged against global currencies amid growing evidence the rest of the world will be affected by the economic slowdown hitting the United States. It was the peso's fourth straight day of losses and its biggest one-day hit since July 6, 2006, when Mexico recounted votes in the disputed election between winner President Felipe Calderon and his leftist opponent Andres Manuel Lopez Obrador.
Most major currencies fell 1.0 percent or more against the greenback, following news of economic weakness in Japan and Europe, which led investors to bet on rate cuts by the European Central Bank and Britain. That was coupled with a surprising rebound in US home sales reported on Thursday and a continued decline in oil prices on Friday.
"There is the possibility that the United States could recuperate before its principal competitors, like Europe," said Ricardo Aguilar, an analyst at Invex brokerage in Mexico City. "If risks in the US aren't so high, then there is no reason to see such strong movements toward emerging markets even if they have higher rates," Aguilar said.
Mexico's peso had risen to its strongest level in six years on Monday on the back of demand for the relatively high interest rates on its debt, as investors sought to beat the paltry yields of US Treasuries.
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