Mexican Peso Declines as Spanish Debt Auction Makes Traders Concerned

The Mexican peso declined today for the second day as the negative impact of concerns about the eurozone, caused by the Spanish debt auction, overshadowed the positive effect of improving employment in the United States.

Spain sold €2.6 billion of bonds today. That’s barely above the minimum target. The borrowing costs climbed, while earlier Spain said that public debt will surge to a record this year. The yield on Mexico’s government securities maturing in 2024 increased one basis point to 6.46 percent. The peso also fell as appeal of riskier currencies decreased after the Federal Reserve signaled that it may refrain for quantitative easing.

USD/MXN rose from 12.7824 to 12.8400 as of 13:56 GMT today.

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