MEXICO CITY, Feb 16 (Reuters) - Mexican markets dipped on Monday after Greece rejected a proposal by its euro zone partners to accept a six-month extension of its international bailout program, which plunged debt talks into disarray.
Mexico’s peso fell 0.32 percent to 14.9265 per U.S. dollar after the Eurogroup of finance ministers met in Brussels to try to find common ground with Prime Minister Alexis Tsipras’ new Greek government, elected on a pledge to scrap the austerity strictures of Greece’s international bailouts.
Since the meeting proved inconclusive, concern mounted that Greece may be headed for a credit crunch that would force it out of the euro zone.
Mexico’s peso sank to a nearly six-year low this month as tumbling oil prices and fears of capital flight due to an expected Federal Reserve interest rate hike hammered Latin America’s second-largest economy, where oil revenue makes up about a third of the budget.
Markets in Brazil, the region’s largest economy, were closed for the Carnival holiday, while U.S. investors were also absent due to the Presidents Day holiday.
Mexico’s IPC stock index cooled 0.19 percent to 42,992.67, led down by miner Grupo Mexico and coke bottler Femsa. (Reporting by Alexandra Alper and Miguel Gutierrez; Editing by James Dalgleish)