Business & Finance
Mexico Rate Cut Fuels Speculation Officials Want a Weaker Peso
Key Points
Mexico Rate Cut Fuels Speculation Officials Want a Weaker Peso Traders are increasingly speculating Mexico’s central bank is pushing to weaken the currency whose strength threatened to weigh on exports and tourism. The Mexican peso has plunged almost 9% since it hit a two-year high in early September, the second-worst showing among 31 major currencies tracked by Bloomberg. Its free-fall accelerated after Banxico officials indicated that month that they would be open to lowering borrowing...
Mexico Rate Cut Fuels Speculation Officials Want a Weaker Peso
Traders are increasingly speculating Mexico’s central bank is pushing to weaken the currency whose strength threatened to weigh on exports and tourism.
The Mexican peso has plunged almost 9% since it hit a two-year high in early September, the second-worst showing among 31 major currencies tracked by Bloomberg. Its free-fall accelerated after Banxico officials indicated that month that they would be open to lowering borrowing costs — which they did last week by a quarter percentage point, surprising economists who had forecast a hold.