Latin America's most traded currency ended a four-day bearish trend against the U.S. dollar on Tuesday, according to Reuters.
The Mexican peso benefited from congressional testimony of Ben Bernanke, U.S. Federal Reserve chief, who said additional monetary easing is on the table as one method of spurring the U.S. economy. Another factor to benefit the peso is U.S. stocks' performance, Dow Jones Newswires reports.
The four consecutive days of losses to the dollar brought the peso perilously close to its lowest value in two years against its northerly rival. The peso is reactive to economic and financial happenings in the U.S. since the U.S. is Mexico's largest trading partner.
Despite the productive Tuesday for the peso, the goodwill might be ephemeral since Greece's ongoing struggles with the sovereign debt crisis are likely to prompt investors to let go of riskier assets, such as the currency of emerging markets. Mexico and Brazil are viewed as Latin America's most rapidly developing economies.
Analyst Alejandro Padilla with Banorte-Ixe in Mexico City told Reuters that Bernanke's suggestion helped drive markets while damage caused by Europe's debt crisis will continue being burdensome to the global economy.
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