Mexico’s Central Bank Tested by Traders as Peso Falls to Record
- Peso has dropped 5.2% this month, most among major peers
- Central bank hasn’t sold dollars directly since February
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The Mexican peso posted the biggest loss among the most-traded currencies as it sank to a record, testing the central bank’s willingness to intervene.
The peso weakened 0.7 percent as of 12:24 p.m. in New York and traded as low as 19.8723 per dollar Tuesday, missing out on the gains in most emerging-market currencies as policy makers in the U.S. and Japan entered their final stretch before announcing decisions on their benchmark rates. The currency has plunged 5.2 percent this month, more than twice as much as the second-biggest loser among 31 major currencies tracked by Bloomberg.