Mexico's peso currency soared on Friday and stocks jumped as news of a US government plan to halt turmoil in financial markets boosted investor appetite for emerging market assets. The peso strengthened 2.34 percent at the central bank's final reference to 10.6390 per dollar.
Fuelling the turnaround, US authorities, led by Treasury Secretary Henry Paulson, are working on a comprehensive solution to mop up hundreds of billions of dollars of bad debt from banks' balance sheets that have choked the global financial system.
Renewed worries about the year-old credit crisis spurred panic in financial markets in recent weeks, pushing investors to dump relatively risky emerging market assets for safer investments like US Treasuries. In debt trading, the government's benchmark 10-year peso bond rose 1.889 in price to 95.205, pushing its yield down 31 basis points to 8.50 percent.
Comments
Comments are closed.