Mexicos peso firms to 6-week high on US payrolls

Fri Mar 5, 2010 9:18am EST Related News Mexico peso slips as investors await US payrollsThu, Mar 4 2010Mexico"s peso, stocks slip after U.S. housing dataThu, Mar 4 2010Mexico peso, stocks rise on Greece hopes, US dataWed, Mar 3 2010

* Peso hits 6-week high after U.S. payrolls

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* US data supports optimistic outlook for Mexico"s exports (Recasts, adds comment and background)

MEXICO CITY, March 5 (Reuters) - Mexico"s peso firmed to a6-week high on Friday after U.S. employers cut a smaller thanexpected 36,000 jobs in February, supporting hopes of economicrecovery in the United States, Mexico"s top trading partner

The peso MXN=MEX01 firmed 0.36 percent to 12.665 perU.S. dollar, paring back slightly after jumping to itsstrongest since Jan. 20 after the release of the U.S. data.

A government report showed U.S. employers cut a smallerthan expected 36,000 jobs in February, leaving the unemploymentrate unchanged at 9.7 percent.

"There were expectations that the number could be muchworse than expected because of the weather. So, its the sameidea that a U.S. recovery is good for Mexico and we see Mexicostrengthening," said Francisco Diez, director of emergingmarkets trading at RBC Capital Markets in New York.

Mexico is counting on an improving employment picture inthe United States to fuel demand for its exports following acrash in late 2008. Around 80 percent of Mexican exports aresent to the United States.

Mexico"s peso has gained more than 4 percent since earlyFebruary, boosted by signs of a more robust rebound in exportsthan many had been expecting. (Reporting by Michael O"Boyle; Editing by Theodore d"Afflisio)

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