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Emerging-Market Currencies Advance as Banxico Intervenes

  • Currencies gauge posts strongest advance in nine months
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Updated on

Emerging-market currencies rose as Mexico’s peso halted a three-day slump after central-bank intervention. Stocks rallied.

In a very volatile session, tMexico’s peso climbed as much as 1.5 percent after Banxico confirmed that it was selling dollars to bolster the exchange-rate from a record low. Gains started to fizzle by mid-morning as some traders deemed the intervention as insufficient to contain the downward pressure. In the afternoon, the peso almost erased the advance after Trump threatened Toyota Motor Corp. with a border tax for planning to build a factory in Mexico.