10 November 2010

MEXICO: Central Banker Says Peso Rally May Require Interest Rate Cut.

BLOOMBERG/
   Central bank Governor Agustin Carstens says he will consider interest rate cuts in 2011 to cool the peso’s record rally.
    “If the central bank perceives it is left alone in the currency war and the peso is losing competitiveness, then the central bank might consider measures including using monetary policy to discourage inflows,” said economist Jimena Zuniga.
      The peso has gained 6.7 percent this year to 12.2667  vs usd. Only Colombia's peso has gained more among  Latin American currencies, rising 10 percent since Dec. 31.