- Oil falls 10% on concerns suppliers would fail to cut output
- Latin American currencies weakened by the most since May
Mexico’s central bank sold dollars at an auction to support the peso after oil prices tumbled.
The peso slid 1.3 percent to 16.9686 per dollar amid a selloff in regional currencies, after tumbling as much as 1.4 percent Tuesday. The Brazilian real sank 2.1 percent and the Colombian peso fell 1.9 percent.
The Mexican central bank sold $200 million at 16.9602 pesos per dollar. In July, the monetary authority boosted its support for the currency after the peso fell to record lows.
“It’s one more factor to support the Mexican peso relative to other liquid emerging-market currencies that are allowed to float, but it’s not big enough to reverse trends or push it in a different direction,” said Alejandro Cuadrado, the chief Latin American currency strategist at Banco Bilbao Vizcaya Argentaria SA in New York.