The Mexican peso dropped against the US dollar today as the market sentiment was detrimental to risky assets of emerging markets.
Concerns about the Brexit, the potential interest rate hike from the Federal Reserve, and economic slowdown in China deterred investors from buying currencies associated with risk. The Mexican central bank hiked interest rates in February, bolstering the peso, but the effect of the hike has waned as of now. Bank’s Governor Agustin Carstens signaled that he is not ready to raise rates further in the near future.
USD/MXN climbed 0.95% to 18.8107 as of 16:46 GMT today.
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