USD/MXN hits another record high near 18.00

By FXStreet FXStreet (Córdoba) – The Mexican peso dropped to record low levels against the US dollar for the third day in a row activating USD auctions at the Bank of Mexico (Banxico) in order to avoid excessive volatility.

USD/MXN opened today around 17.81 and then pulled back to 17.71 only to resume the upside. After the US employment report, greenback gained momentum and pushed the pair to test yesterday’s highs at 17.85. It broke above and climbed to 17.973, the new all-time high.

It was trading around17.91, about to end the week with a gain of almost 4%. The Mexican and the Argentine peso were the worst performers during the first week of 2016 among Latin American currencies.

Banxico Governor: MXN should appreciate after storm

Mexico Central Bank Governor, Agustin Carstens said that the Mexican peso may have over-reacted to recent developments and it should appreciate after markets calm down, reflecting economic fundamentals.

Carstens told that it was too early to decided if Banxico will end the intervention to avoid a sharp depreciation. He highlighted that the level of international reserves is comfortable.
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Source:: FX Street