MEXICO CITY, Aug 21 (Reuters) - Mexico’s central bank said on Friday it had sold $123 million of $200 million offered after a sharp drop in the peso to a record low triggered an auction.
The central bank sold dollars at a weighted average of 16.8868 pesos per dollar. The auction is triggered when the peso slumps more than 1 percent from the previous day’s fix rate. On Friday, the peso hit a fresh record low of 16.93 per dollar.
Mexico could further bolster its defense of the peso if it hits 17 per dollar and a disorderly move past that level could push the central bank to raise interest rates, according a Reuters poll earlier this month. (Reporting by Michael O‘Boyle)