Yuan Plunge Could Spur Devaluation Race, Mexico Minister Says
- Mexico's stocks have been swept up in selloff spurred by China
- Peso slumped on Thursday to weakest since 1993 re-denomination
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The decline in China’s yuan is generating turbulence in financial markets across the world, including Mexico, and threatens to spark a cycle of competitive devaluations of currencies, Finance Minister Luis Videgaray said.
Videgaray said that while the decline in China’s currency has been relatively small so far, it’s been enough to concern global investors and affect Mexico’s stock market and currency. Mexico’s peso touched a record low Thursday and the benchmark IPC stock index declined for a ninth straight session.