Mexican Currency Rises for Third Day on U.S. Bank Bailout Plan

By Valerie Rota

Sept. 22 (Bloomberg) -- Mexico's peso rose for a third day as a proposed $700 billion U.S. government bank bailout stoked demand for higher-yielding assets.

The peso gained 1 percent to 10.5546 per U.S. dollar at 9:15 a.m. New York time, from 10.6585 on Sept. 19. It has risen 2.7 percent over the past three days.

Yields on Mexico's 10 percent bond due December 2024 fell 3 basis points, or 0.03 percentage point, to 8.51 percent. The bond's price rose 0.32 centavo to 113.03 centavos per peso, according to Banco Santander SA.

To contact the reporter on this story: Valerie Rota in Mexico City at vrota1@bloomberg.net.