Mexico’s peso advanced for a second day as optimism that European finance ministers will make progress in solving the region’s debt crisis helped boost demand for the country’s higher-yielding assets.

CHICAGO (MarketWatch) The governor of the Bank of Mexico said Wednesday the peso has depreciated too much following volatility driven by Europe's sovereign debt crisis, though he expects a rebound "when the dust settles."

Mexico's peso strengthened 0.934 percent to 13.38 per dollar on Wednesday after Germany's lower house of parliament approved a motion to strengthen the euro zone rescue fund.