Mexico peso soars as investors eye Fed; stocks fall

MEXICO CITY, Feb 28 (Reuters) - Mexico's peso surged to a 23-month high on Thursday and bonds jumped as signs the U.S. economy may be slipping into a recession led investors to bet the Federal Reserve would cut interest rates.

The peso MEX01 gained 0.67 percent to 10.668 per dollar at the official central bank close.

In equities trading, weak U.S. data helped push the benchmark stock IPC stock index .MXX down 0.97 percent to 30,130.47 points, snapping a six-session rally.

"It's all about expectations of a rate cut," said Vicente Gonzalez, who heads currency trading at ABN AMRO in Mexico City.

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Mexico's peso reached its highest value in 23 months while the U.S. economy is in a decline. The peso went up 0.67 percent to 10.668 per dollar.

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