UPDATE 2-Mexico peso slides, hits 6-year low despite intervention
(New throughout, adds bets on rate hike, adds market reaction, analyst comment)
By Luis Rojas
MEXICO CITY, March 6 (Reuters) - Mexico's peso tumbled on Friday despite central bank intervention, hitting a six-year low as investors fled emerging markets and fixed-income investors bet that higher interest rates are in store on both sides of the border.
Unexpectedly strong U.S. jobs data fueled bets that the U.S. Federal Reserve could raise interest rates in June, which could hasten the investor exodus from emerging markets.
Mexican policymakers have suggested they could raise local interest rates to increase the appeal of domestic debt.
"With the weak peso and the higher probability that Fed goes in June, that all means that we should think of a preemptive hike by Mexico," said Benito Berber, an analyst at Nomura in New York.
The peso slid more than 2 percent on Friday to 15.5210 per dollar, its weakest since March 2009. The central bank sold all $200 million offered in a rules-based auction to support the peso, which continued to fall.
Mexico's central bankers are worried that deep peso losses could affect financial stability.
Foreign investors have amassed record holdings of around 2.15 trillion pesos ($139 billion) of local-currency debt and a stampede for the doors by investors could drive much deeper peso losses, analysts said. Continuación...