Mexico peso down to four-week low

30 Dec, 2007

The Mexican peso weakened to a four-week low on Friday after surprisingly weak data on new home sales in the United States, Mexico's top trading partner. The peso gave up 0.24 percent to 10.9025 per dollar, its weakest since December 3.
Sales of new single-family US homes fell much more than expected in November and marked their slowest annual pace in more than 12 years, according to a government report.
Bad news for the US economy is negative for Mexico, which sells about 80 percent of its exports to its northern neighbour. The benchmark IPC stock index gained 0.20 percent to finish at 29,700.19 points in light holiday trade.
Dominant cell phone operator America Movil led the rally, rising 0.67 percent to 33.14 pesos, while its New York traded shares were up 0.12 percent at $60.73.
Drinks company Femsa, which said on Thursday it is raising beer prices to offset inflation, added 2.54 percent to 42.00 pesos. In debt trading, the yield on the benchmark government 10-year peso bond edged up 2 basis points to 8.14 percent.

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