November 5, 2008 / 2:26 PM / 11 years ago

Mexico peso weakens after plane crash, US job data

MEXICO CITY, Nov 5 (Reuters) - Mexico’s peso weakened on Wednesday after a plane crash killed the nation’s interior minister, and U.S. employment data pointed to weakness in the economy of the United States, Mexico’s top trading partner.

The peso MXN=MEX01 weakened 0.12 percent to 12.63 per dollar.

Mexican Interior Minister Juan Camilo Mourino, a close ally of President Felipe Calderon, died on Tuesday when the small aircraft he was traveling in crashed into evening rush hour traffic in Mexico City.

The peso sharply weakened to to nearly 13 per dollar on news of the plane crash, Brown Brothers Harriman noted in a report, but later pared its losses.

The reason for the crash was not clear but a civil aviation expert told Reuters that sabotage could not be ruled out, along with other possible causes such as engine failure.

Adding to pressure on the peso, U.S. private employers cut a larger-than-expected 157,000 jobs in October, a report by the private company ADP Employer Services said on Wednesday.

Increasing signs of a recession in the United States bode poorly for Mexico, which sends around 80 percent of its exports to its northern neighbor. (Reporting by Michael O’Boyle, Editing by Walker Simon)

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