Mexico Peso Falls to Record as Brexit Vote Reverses Week’s Gains
- Currency declines to lowest-ever level against U.S. dollar
- Peso is worst emerging-market performer after Argentina
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The Mexican peso tumbled to a record low after the U.K. voted to leave the European Union, prompting reassurances from policy makers that they will intervene if necessary to defend the currency from speculators.
The currency, which traders consider a bellwether for risk because it’s the most liquid in emerging markets, weakened as much as 7.1 percent in overnight trading, to an unprecedented 19.5187 per dollar. It pared losses to 3.7 percent, trading at 18.9227 per dollar as of 1:30 p.m. in New York. The cost of hedging the country’s sovereign debt against losses with credit default swaps jumped the most in three years.