Mexico peso firms as oil prices surge; stocks dip

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MEXICO CITY, April 22 (Reuters) - Mexico's peso firmed sharply on Tuesday as oil prices surged to a record high, while stocks sagged, hurt by losses in telecom bellwether America Movil.

The peso MXN= MEX01 strengthened 0.38 percent to 10.4985 per dollar at the central bank close, The currency continued to strengthen throughout the afternoon to 10.4835 per dollar.

Mexico is the world's No. 6 oil exporter and a major supplier of crude to the United States. Crude CLc1 rose $2 to an intraday record at $119.90 a barrel, boosted by supply worries from key producers Russia and Nigeria and jump in demand last month from China.

"This is very positive for the peso," said Bertrand Delgado, a senior economist at IDEAglobal in New York.

The peso on Monday had slipped from a two year high, finishing that day 0.69 percent lower.

Traders on Tuesday said the peso was also supported by expectations the U.S. Federal Reserve will cut its target interest rate later this month. That would widen the spread between U.S. and Mexican rates, making Mexico's relatively high rates more attractive to yield-hungry investors.

Mexico's central bank last week held its key interest rate at 7.50 percent for the sixth straight month, while the Fed has been cutting its benchmark rate, now at 2.25 percent, since September.

The 525 basis point spread between Mexican and U.S. rates is the widest since October 2005.

"With such a wide rate spread, our currency has become an important short-term refuge," said a currency trader in Mexico City.

The peso has gained about 4 percent this year.

In debt trading, the benchmark 10-year peso bond MX10YT=RR was flat in price at 100.055 with a yield of 7.74 percent.

In stock trading, the benchmark IPC index .MXX closed 0.17 percent lower at 32,039.72 points.

Shares of America Movil (AMXL.MX), Latin America's biggest cell phone operator, shed 1.92 percent to 34.31 pesos while its New York traded stock (AMX.N) fell 1.4 percent to $65.63.

Retailer Elektra (ELEKTRA.MX), owned by media and retail tycoon Ricardo Salinas, dropped 2.41 percent to 321.41 pesos.

Among gainers, shares of Cemex (CMXCPO.MX), the world's No. 3 cement producer, gained 1 percent to 29.18 pesos after posting an 18 percent rise in first-quarter profit late on Monday.