Mexico's peso rallies on Greek bailout hopes
(Adds comment, background)
MEXICO CITY, Feb 9 (Reuters) - Mexico's peso rallied on
Tuesday as speculation that European Union nations could bail
out debt-burdened Greece boosted investor appetite for riskier
emerging market currencies.
The peso <MXN=><MEX01> gained 0.75 percent to 13.124 per
U.S. dollar in its biggest one-day jump since Feb. 1.
Expectations of a rescue for Greece followed news that
European Central Bank President Jean-Claude Trichet was leaving
a meeting of central bankers in Sydney early to attend a
European Union leaders' summit. For details, see
[ID:nSGE61801C]
Worries that rising debt in Greece, Portugal and other euro
zone states could undermine a global recovery have pushed
investors to dump riskier assets and seek refuge in the U.S.
dollar in recent weeks.
Talk of a bailout for Greece buyoed the euro, which sank to
an 8-1/2 month low last week.
"I am afraid this is no more than a bounce for the euro.
The problem is too big. It isn't just Greece, but Spain and
Portugal. The tendency of the euro has been very bearish," said
Alfredo Puig, a trader at Vector brokerage in Monterrey.
Investor appetite for the euro is often a bellwether for
emerging market currencies in general. Mexico's peso has lost
around 4 percent since Jan. 19 amid rising worries about a
sovereign debt default in Europe.
Mexico's central bank will release January inflation data
at 9:00 a.m. local time (1500 GMT) on Tuesday and consumer
prices were seen jumping 1.02 percent as new taxes took effect.
[ID:N08205082]
However, the central bank chief has said the effect will be
transitory and will not spur the need for an interest rate
hike.
(Reporting by Michael O'Boyle, Editing by Chizu Nomiyama)
((michael.oboyle@thomsonreuters.com; Tel: +52 55-5282-7153;
Reuters Messaging:
michael.oboyle.reuters.com@reuters.net))
Keywords: MARKETS MEXICO/
15:20-09/02
