1.   Higher rates would help the peso by making deposits and bonds denominated in it more attractive.

2.   Lower U.S. interest rates also helped the peso as they made Mexican securities more attractive relative to U.S. fixed-income securities.

3.   Rising stocks help the peso because global investors buying Mexican equities need pesos to pay for them.

4.   The conclusion of the American assistance package on Tuesday also did not help the peso much.

5.   The peso was helped by higher Mexican interest rates, which make bank deposits denominated in the currency more attractive.

6.   Slack corporate dollar demand also helped the peso, traders said.

7.   The peso was also helped by announcements Tuesday that President Ernesto Zedillo was pursuing peace talks with Chiapas rebels as well as political and electoral reforms with opposition lawmakers.

8.   Traders said a special arrangement between the central bank and some foreign banks is also helping the peso.

9.   Traders said a recent Philippine central bank rule barring banks with excess dollars from tapping its overnight lending facility also helped the peso.

10.   Traders said the relatively quiet currency trading in Southeast Asian currencies in recent days also is helping the peso.