UPDATE 1-Mexico’s Carstens says OK with level of peso

(Adds comments on emerging market money flows, peso level)

MEXICO CITY, Nov 29 (BestGrowthStock) – Mexico’s central bank
governor, Agustin Carstens, said on Monday he was fine with the
level of the Mexican peso (MXN=: ).

“For the moment we are are fine,” Carstens said when asked
about pressure on the currency.

The central bank held its target for overnight bank lending
at 4.5 percent on Friday, the lowest since policymakers began
targeting the rate in January 2008.

The peso strengthened 0.02 percent to 12.487 per dollar on
Monday afternoon, paring losses late in the session after
sinking to its weakest intraday level since Oct. 8 as investors
were unconvinced by a rescue package for Ireland.

Carstens told reporters the central bank was carefully
monitoring the inflow of foreign capital investments, as
leading global investors search for better returns in assets
such as Mexican and Brazilian bonds.

Carstens warned on Nov. 17 of a risk of bubbles forming in
emerging markets as capital floods in.

“It is an issue we’re going to continue to watch over the
coming weeks and months. Capital flows are always positive as
long as they come in at the right speed,” he said.
(Reporting by Krista Hughes and Adriana Barrera; Editing by
Steve Orlofsky)

UPDATE 1-Mexico’s Carstens says OK with level of peso