Reuters: US Dollar Report: UPDATE 1-Mexico sells dollars to shield peso, in first since 2009

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Mexico sells dollars to shield peso, in first since 2009 May 23rd 2012, 17:33 Wed May 23, 2012 1:33pm EDT MEXICO CITY May 23 (Reuters) - Mexico's central bank shielded Mexico's slumping peso with dollar sales on Wednesday for the first time since late 2009 as fears sparked by Europe's debt crisis drove the currency past 14 per dollar to its weakest level since November. Mexico's central bank said it sold $258 million of $400 million on offer at a weighted average of 14.01 pesos per dollar. Mexico revived its dollar auction program late last year in the central bank's most forceful move to protect the peso since the collapse of U.S. investment bank Lehman Brothers during the 2008 financial crisis, but had not used it until now. The peso weakened 0.88 percent on Wednesday, blowing past the psychological 14-per-dollar level to trade at 14.03 per dollar on the open market. The peso has tumbled more than 10 percent since mid-March, and policymakers fear that a weakening peso could feed into higher inflation. Mexico's central bank governor, Agustin Carstens, said last week that the peso was trading far below its fundamental value due to the global volatility sparked by Europe's debt crisis. Mexico's auction program offers up to $400 million whenever the peso declines by at least 2 percent against the dollar during a single session compared with the previous day's fix price.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions