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Mexico's central bank auctions off $200M amid peso's slide

Mexico's central bank auctions off $200 million as peso nears 6-year low against US dollar

Mexico's central bank auctions off $200M amid peso's slide

MEXICO CITY (AP) -- Mexico's central bank has auctioned off $200 million to shore up the peso as it nears a six-year low against the U.S. dollar.

The peso has come 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 hike in U.S. interest rates, an expectation that creates greater demand for dollars in Mexico.

The bank announced in December that it would hold daily dollar auctions of $200 million when 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 has been triggered.

The dollar was trading at 15.4 pesos in the morning after closing at 15.2 the previous day.

Updated : 2021-09-27 00:14 GMT+08:00