The Mexican peso reached today the highest level in more than a month as Forex market participants ignored rating downgrades by Standard & Poor’s, supporting demand for currencies of emerging economies.
S&P performed downgrades for credit ratings of several European countries on January 13, including a two-notch cut for Spain. Despite the negative news, yield on Spanish debt dropped to average 2.049 percent at today’s auction, compared with 4.05 percent on December 13. Mexico ships 80 percent of its exports to Spain.
USD/MXN slid from 13.5410 to 13.4600 as of 15:58 GMT today and touched 13.4420 earlier — the lowest price since December 8.
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