EMERGING MARKETS-Mexico peso falls to nearly 4-month low on Brexit, Fed jitters
By Bruno Federowski
SAO PAULO, June 13 (Reuters) - The Mexican peso fell to its lowest level in nearly four months on Monday, as traders sold risky emerging market assets amid a slump in oil prices and fears that Britain may vote next week to leave the European Union.
Traders also held back risky bets ahead of a U.S. Federal Reserve meeting this week, though most believe the central bank will stand pat.
The Mexican peso fell for the third consecutive day, losing 1.09 percent to 18.8350 to the dollar.
The peso has underperformed its Latin American peers for months, losing over 9 percent so far this year.
The Mexican central bank reacted in an impromptu meeting in February by hiking rates and directly selling dollars to banks.
This assuaged investors for a while, but the currency soon resumed its decline as worries mounted over the global economy and weakness in oil.
Central bank governor Agustin Carstens said last month the peso is not seeing a new speculative attack despite the recent slump, suggesting he was reluctant to make another surprise move and prompting investors to pare back bets on further policy tightening. Continuación...