Strong demand for contracts that protect from declines in Mexico’s peso shows lingering concern the currency is vulnerable to a fresh selloff after a six-week rally.
In its first auction of foreign-exchange hedges, Mexico’s central bank got $2 billion of bids for the $1 billion of securities it offered. Monday’s sale marked the first time authorities have offered the non-deliverable forwards in an attempt to tame the volatility seen since Donald Trump entered the presidential race vowing to crack down on Mexican exports.
