Mexico's Peso Weakens on Lower-Than-Expected U.S. Growth Data

By Drew Benson

July 31 (Bloomberg) -- The Mexican peso fell for the first time in four days after reports showed the U.S. economy expanded less than forecast during the second quarter.

The U.S. Commerce Department said today the economy of Mexico's northern neighbor and top trading partner grew at a 1.9 percent annualized rate during the second quarter, below the 2.3 percent gain forecast in a Bloomberg News survey of 79 economists.

The Mexican peso slid 0.21 percent to 10.0391 per dollar at 9:59 a.m. in New York, from 10.0199 yesterday. It touched 10.003 per dollar last week, the strongest since October 2002.

Yields on Mexico's 10 percent bond due December 2024 rose five basis points, or 0.05 percentage point, to 9.01 percent. The price slid 0.42 percent to 108.42 centavos per peso, according to Banco Santander SA.

To contact the reporter on this story: Drew Benson in Buenos Aires at abenson9@bloomberg.net