Mexico's central bank auctions off $200M amid peso's slide
Mar. 06, 2015
MEXICO CITY (AP) — Mexico's central bank auctioned off $200 million in dollars Friday to shore up the peso as it neared a historic low against the U.S. currency.
The peso came under new pressure on news of increased job creation in the United States, suggesting an improving U.S. economy. Analysts forecast that could lead to a possible rise in U.S. interest rates, an expectation that creates greater demand for dollars in Mexico.
The central bank announced in December that it would hold daily dollar auctions of $200 million whenever the peso sheds 1.5 percent or more of its value from the previous day. Friday was the second time since then that the auction mechanism was triggered.
The dollar closed the day at 15.48 pesos on the interbank exchange rate, after ending at 15.20 the previous day.
According to central bank statistics, the peso hit a low of 15.49 to the dollar on the interbank exchange rate on March 9, 2009.