Foreign investors flock to Mexico's bond market; Record $21 million invested

Foreign investors are flocking to Mexico's bond market in record numbers, thanks to a stronger Mexican peso. From September 2010 to March 2011, international investors bought $21 million in debt.

In a May 10 interview, Mexican President Felipe Calderon said that he was "very comfortable" with the gains in the peso.

As the second largest Latin American country behind Brazil, Mexico is the only country that hasn't raised rates this year.
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Mexico Peso Rises as European Leaders Extend Support for Euro

Mexico’s peso gained the most in two weeks as European leaders expressed support for the euro and the creation of a region-wide finance ministry, pushing the dollar down and boosting demand for higher-yielding assets.

Source: Bloomberg

Mexico's Peso May Be Japanese Investors' Next Destination

via @WSJ: Japanese investors are gradually looking at the Mexican peso, as the nation's solid economic growth and stable policy stance adds to the currency's appeal. However, investment has yet to return to pre-crisis levels, and largely depends on the U.S. outlook.

Mexico Doing Well, Investors Take Note

According to this article by the Financial Times, "Mexico is in an undeniable sweet spot right now" with regard to its economy and inflation. A report by HSBC notes that the combination of high oil prices and low domestic inflation sets the nation apart from other emerging markets. In the report, the authors revised their estimate for the Mexican peso, "which they now see as ending the year at 11.30 against the US dollar compared with their previous estimate of 11.80."

Mexico Stocks Open Lower, Peso Gives Back Gains Against Dollar

I blogged earlier today about the exchange rate of the Mexico peso. Today, Mexico's stocks opened lower, weighed down by losses in U.S. equities, while the peso lost ground against the dollar.

This, according to the Wall Street Journal:

"The peso was giving back some of the previous session's gains as the currency continues to move with swings in global investor moods about risk, and was quoted in Mexico City at MXN11.6650, according to Infosel, compared with MXN11.6250 at Thursday's close.

While weaker-than-expected U.S. economic data could keep the Fed dovish for longer, generating appetite for higher-yielding investments, "over recent weeks the market has gradually priced in the likelihood of a slowdown, thereby triggering flights from risky assets," BBVA said."

It's all about the money

Exchange rates are always of interest when doing business in another country. When it comes to doing business in Mexico, it's all about the peso. Currently, the $1 is equal to about 0.86 Mexican pesos.

An article in today's Wall Street Journal notes that Mexico's stocks opened lower Friday, weighed down by losses in U.S. equities, while the peso lost ground against the dollar.