Mexico's Central Bank Steps In as Peso Tumbles on Fed Rate Bets
- Banxico sells $400 million to contain decline in peso
- Currency retreated to the lowest level since Sept. 29
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The Mexican central bank sold $400 million to contain a drop in the peso, its first currency intervention since the institution changed its support mechanisms last month.
The peso fell 1.6 percent to 16.9150 per dollar at 1:23 p.m. in Mexico City Monday, the lowest since Sept. 29. A Bloomberg gauge of 20 developing-nation currencies tumbled to a record low on speculation the Federal Reserve will raise interest rates on Dec. 16, a move that could reduce the appeal of riskier assets. A selloff in oil, which accounts for a third of the Mexican government’s budget, also contributed to the peso’s decline.