The Mexican peso increased after data indicated U.S. production grew 0.7 percent last month, a significant increase over September's 0.1 percent fall. The median estimate of 72 analysts surveyed by Reuters revealed a gain of 0.4 percent, which also was surpassed by the actual figure.
"Positioning in the peso is basically neutral and foreign investors seem to be basically holding on to their local bond positions," Latin America economist Clyde Wardel with HSBC in New York told Reuters. "There is little conviction about any trend so you're likely to see the peso and other Latin American currencies rangebound."
The yield on 10-year Mexican government bonds was more than four percentage points higher than U.S. government bonds, which also drove the peso higher in value.
Bloomberg reports Blake Mora, Mexico's interior minister who died last week, was killed in a chopper crash caused by poor weather impairing the flight. The number two official in the nation's war on drugs was not killed by intentional sabotage, the government said on Tuesday.
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