Mexico Moves to Support Peso For Third Day as Currency Tumbles

Mexico’s central bank held an extraordinary dollar auction for a third consecutive day to support the peso as the local currency tumbled to the lowest level in a month amid an emerging-market selloff.

Policy makers sold an extra $200 million today, following similarly-sized auctions Monday and Tuesday. Still, the peso fell 1.3 percent to 17.1113 per dollar, reaching what would be the lowest closing level since Aug. 25.

The most-traded emerging-market currency in the world followed the Brazilian real as the world’s worst performers in a basket of 16 major currencies tracked by Bloomberg. Investors sold emerging-market assets and oil prices tumbled as weak manufacturing data in China spurred concern about the outlook for global economic growth.

"Latin American currencies are feeling the brunt of the adjustment, with both falling oil prices and China affecting them," said Juan Carlos Alderete, a strategist at Grupo Financiero Banorte SAB in Mexico City.

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