Mexican stock markets surge as PESO hits new high
April 2, 2008
The Mexican stock markets hit a five month high early this week on the back of rising inflation and steady interest rates mainatained by the central bank of Mexico. The country currence, the mexican PESO has climbed to a new two year high against the american dollar. The PESO, in early trades, rose close to 0.5% to end the day on a very strong note at close to 10.6 pesos to the US dollar. The Mexican Central bank Governor, Mr. Guillermo Ortiz said that though US and various European econmoies were in the midst of a recession, the asset prices in Mexico were strong and hence inflation remained a serious concern. Mexico along with brazil, India and various other emerging econmies is seeing an increase in inflation due to the cut in interest rates by the Fed. The US interest rates are at 2.25% compared to the 5%+ interest rates in various developing economies. Hence US investors are shifting their investments to these countries to profit from the interest rate differential.
Posted in World Stock Markets
