Mexican Peso Weakens on Fed Tampering Concerns

The Mexican peso declined today as worries that the US Federal Reserve may trim its asset-purchase program made investors unwilling to keep riskier currencies of emerging nations.

Traders are worried that signs of stable economic growth may encourage the Fed to cut its monetary stimulus. Such worries hurt currencies of emerging markets and the peso was the worst performer among Latin American currencies today. The currency was still heading to a monthly gain on prospects for energy and tax reforms that may help the Mexican economy to become more efficient.

USD/MXN advanced from 12.7696 to 12.8319 as of 18:21 GMT today.

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