Daniel Chavez Moran: Latin American Currencies Gain

Though now retired, Mexican entrepreneur Daniel Chavez Moran remains dedicated to advancing democracy and economic opportunity for all of Latin America through his philanthropic work with the non-profit Vidanta Foundation. Chavez Moran also follows economic news and notes this recent report from Reuters news service regarding gains for Latin American currencies and the inter-relation of the economies of Mexico and the United States:

RIO DE JANEIRO/MEXICO CITY, Aug 29 (Reuters) – Latin American currencies gained against the U.S. dollar on Monday, led by Mexico's peso, after better-than-expected U.S. economic activity reduced concern that the world's largest economy is entering another recession. U.S. consumer spending rose 0.8 percent in July, its fastest pace in five months, the U.S. Commerce Department said on Monday. The result beat the 0.5 percent expected by 59 economists surveyed by Thomson Reuters ECONALLUS.
 The United States is responsible for about 80 percent of Mexico's export earnings and is the largest or second-largest trading partner of most Latin American countries. "When you get news of growth in the U.S., that's better for the peso," said Marcelo Salomon, chief economist for Brazil and Mexico at Barclay's Capital in New York. "Concern about the United States going into recession would have been bad news not just for Mexico but for the rest of Latin America as well."

Related posts: Daniel Chavez Moran on economic outlook for 2011 and Chavez Moran: A Public Forum with Mexican President Calderón.