The Mexican peso gained today after Standard&Poor’s confirmed the country’s credit rating and changed the outlook to positive on hopes for fiscal reforms that should improve the nation’s economy.
The S&P confirmed Mexico’s long-term sovereign foreign credit rating at BBB, which is not that good as it is the second-lowest investment grade. Yet the rating agency changed the outlook from stable to positive, giving hope that this may improve in time. The agency explained its decision:
The ratings on Mexico reflect its track record of cautious fiscal and monetary policies, which have contributed to low government deficits and inflation, bolstered economic resiliency, and contained fiscal and external debt levels.
USD/MXN fell from 12.4423 to 12.4332 as of 22:24 GMT today. EUR/MXN declined from the opening level of 16.2097 and the daily high of 16.2180 to 16.2013.
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