• Peso is world's most-traded emerging-market currency
  • Mexican peso joins global selloff versus European currency

Mexico’s peso led losses among major currencies after the European Central Bank announced smaller-than-forecast stimulus measures, fueling a selloff in currencies that had been used to wager on further monetary easing in Europe.

The peso, the most-traded emerging-market currency, weakened 3.9 percent to 18.3026 per euro as of 4:33 p.m. in New York. Traders had built up large long positions in the Canadian dollar, U.S. dollar and the Mexican peso versus the euro, and when the ECB’s announcement was released it sparked a wave of selling that hit the peso the strongest, according to Eduardo Suarez, a Latin America strategist at Bank of Nova Scotia.

European Central Bank President Mario “Draghi triggered the stops” on those trades, Suarez said.

The peso also led losses among major currencies against the dollar, falling 0.9 percent.

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