Mexico's Peso Rises on U.S. Plan to Inject Capital Into Banks

By Michael J. Moore

Oct. 14 (Bloomberg) -- Mexico's peso rose for the third day, the longest winning streak in three weeks, as the U.S. government announced a plan to inject capital into banks, sparking demand for higher-yielding, emerging-market assets.

The peso climbed 2.5 percent to 11.9503 per dollar at 8:35 a.m. New York time. The currency has risen 9.6 percent in the past two days, the biggest two-day rally in 13 years, after a 14 percent decline last week. Banco de Mexico sold $8.9 billion last week in an effort to shore up the peso after it slid to a record low of 14.2927.

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net