January 5, 2011 / 3:22 PM / 8 years ago

UPDATE 1-Mexican finance minister sees peso stable in 2011

(Adds quote from finance minister)

MEXICO CITY, Jan 5 (Reuters) - 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 dollar.

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 )

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