Mexico stocks up on Fed; peso hurt by ratings bets

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MEXICO CITY, Nov 4 (Reuters) - Mexican stocks jumped on Wednesday after the U.S. Federal Reserve maintained its stance to keep borrowing costs ultra-low, while the peso slipped on worries of a possible downgrade of Mexico's debt.

The IPC stock index .MXX closed up 1.88 percent to 29,430.51 while the peso MXN=MEX01 lost 0.33 percent to 13.304 even as the dollar broadly weakened.

The Fed kept in place its pledge to keep interest rates near zero for an "extended period," weakening the appeal of the dollar and boosting demand for riskier assets.

The Fed also said the economy has "continued to pick up" since its last policy meeting in September.

"The monetary stimulus will remain in place to keep strengthening the economic recovery," said Carlos Alonso, a trader at Interacciones brokerage in Mexico City.

Mexico sends more than 80 percent of its exports to its northern neighbor and it is counting on a rebound in the U.S. economy to pull it out of a deep recession.

Also helping was data showing the U.S. services sector grew in October for a second straight month, while U.S. companies cut jobs last month at the slowest pace in more than a year.

Shares of America Movil (AMXL.MX: Quote, Profile, Research), Latin America's biggest wireless operator, rose 1.87 percent to 30.44 pesos.