(Adds quote from finance minister)
MEXICO CITY Jan 5 Mexico's Finance Minister
Ernesto Cordero said on Wednesday that the Mexican peso would
be stable in 2011, highlighting local authorities lack of
concern about a significantly stronger currency.
"I see (the peso) as very stable," Cordero said in a radio
interview, adding that the Mexican currency MXN= would likely
trade in a range between 12.17 per dollar and 12.70 per
Other Latin America countries like Chile and Brazil have
stepped up intervention in foreign exchange markets to weaken
their currencies, whose strong gains are hurting exporters.
Mexico's currency, on the other hand, has yet to strengthen
back to levels seen before the 2008 global financial crisis.
The Mexican peso has been held back by a sluggish economic
recovery, drug violence and politicians' failure to pass key
tax, energy, labor and security reforms.
The peso gained almost 6 percent in 2010 against the U.S.
dollar and was trading 0.18 percent stronger at 12.2040 per
dollar on Wednesday, near a eight-week high.
Cordero said short-, medium- and long-term interest rates
would continue to fall during 2011.
The yield on Mexico's benchmark 10-year peso bond
MX10YT=RR fell about 1 percentage point in 2010.
(Reporting by Luis Rojas Mena. Editing by W Simon )