Mexico's Peso Hits New Low Against Dollar; Stocks Gain

        By Anthony Harrup
        MEXICO CITY--Mexico's peso slid to a new all-time low against the dollar Thursday after first-time U.S. unemployment claims fell to their lowest level in decades in another sign that the U.S. Federal Reserve could have cause to start raising interest rates soon.
        The peso was quoted closing in Mexico City at MXN16.1990 to the dollar, according to Infosel, compared with MXN16.1250 at the close Wednesday.
        Finance Minister Luis Videgaray reiterated the government's and central bank's commitment to a market-determined exchange rate, saying at a press conference that authorities were keeping a close watch on the market to make sure there is adequate liquidity and orderly moves in the rate.
        The dollar's significant rise in recent months is a global phenomenon affecting other currencies as well as the Mexican peso, and measures already taken such as the Bank of Mexico's daily dollar sales have contributed to maintaining adequate conditions, he said.
        The minister said the weaker peso poses no risk on the government debt front, since 78% of the debt held by foreigners is in Mexican pesos and the government's foreign borrowings include currencies such as the euro and the yen, which have also lost ground against the dollar.
        Local stocks recovered some of Wednesday's losses, with the benchmark IPC index closing up 0.4% at 44,836 points.
        Beverages and retail company Femsa (FMX, FEMSA.MX) UBD shares rose 2% to MXN145.49, and retailer Wal-Mart de Mexico (WMMVY, WALMEX.MX) shares closed up 1.3% at MXN38.39.
        Write to Anthony Harrup at anthony.harrup@wsj.com
        (END) Dow Jones Newswires

        July 23, 2015 16:54 ET (20:54 GMT)

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