Mexican Peso Falls as Fears Grow After European Elections

The Mexican peso fell today as fears of the European financial crisis intensified after the elections the past weekend revealed growing resentment against austerity measures in European countries. The currency managed to rebound later.
The French voted in favor Francois Hollande in the presidential election over Nicolas Sarkozy. Hollande says that Europe needs growth, not austerity. Such view may benefit the eurozone in the long run, but in the immediate futures it spurred fears among investors. Concern about the crisis in Europe was one of the reasons the Mexican peso was the worst performer in 2011.
USD/MXN was down from 13.1643 to 13.1575 as of 16:18 GMT today. The intraday high was 13.2990.

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