RIO DE JANEIRO: The Mexican peso gained for a fifth consecutive session on Wednesday, leading Latin American currencies higher, as data showed US retail sales rose in February more than twice as much as economists expected.
The data boosted prospects for Mexico's economy, adding to investor optimism about a series of structural reforms planned by the new government of President Enrique Pena Nieto. The United States is the main destination for Mexican exports.
The Mexican peso firmed 0.4 percent to 12.3955 per dollar, piercing the mark of 12.4 per greenback for the first time in 18 months. Since March 6, the peso has gained more than 3 percent against the dollar.
Pena Nieto, who took office in December, unveiled a plan this week to allow more competition in the telecommunications sector, raising hopes that structural reforms are gaining traction in Latin America's second-largest economy.
He has also promised changes to the country's tax system and its state-run energy sector in a bid to attract more investment and boost growth to 6 percent a year, about three times the average of the past decade.
The reform outlook encouraged rating agency Standard & Poor's to signal on Tuesday it may upgrade Mexico's credit rating within the next 18 months.
Other Latin American currencies posted more modest gains as an increase in Italy's borrowing costs kept investor optimism in check.
The Brazilian real rose 0.1 percent to 1.9595 per dollar. Its gains were also curbed by expectations the central bank would intervene in the market to curb any sharp moves in the exchange rate.
"The US data came in better than expected and that is offsetting Europe," said Mauricio Nakahodo, an economic consultant with Tokyo-Mitsubishi bank in Sao Paulo, referring to fears Italy could rekindle the European debt crisis.
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