Investors Push Mexico Peso to New Low Versus Dollar Amy Guthrie - WSJ.com
go to original January 7, 2016

The Mexican peso was quoted at 17.5315 to the U.S. dollar in late Mexico City trade Wednesday. (Susana Gonzalez/Bloomberg News)

Update: U.S. Dollar Surges Above 18 Pesos for First Time Ever (The Yucatan Times)

A fresh bout of risk aversion hitting emerging markets pushed Mexico’s peso to a new low against the U.S. dollar Wednesday, as investors took out their angst on the heavily traded currency.

The peso was quoted at 17.5315 to the U.S. dollar in late Mexico City trade, compared with 17.3220 toward Tuesday’s close.

A toxic mix of global news sent stocks, oil prices and emerging market currencies plunging Wednesday.

North Korea said it successfully staged its first test of a more potent nuclear weapon. And weak economic data out of China renewed concerns about slowing growth in the world’s second-biggest economy.

The peso is a natural selling target when oil prices plummet, since Mexico relies on oil revenue to finance a large portion of its annual budget.

Read the rest at WSJ.com

Related: Mexico Cenbank Sells $200 Mln After Peso Hits Record Low (Reuters)

Related: Mexican Peso's Fortunes Are Linked to the US Dollar (Market Realist)

Photo: Susana Gonzalez/Bloomberg News

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