MEXICO CITY, Aug 21 (Reuters) - Mexico’s central bank said on Friday it had sold $77 million in an auction after a sharp drop in the peso to a record low triggered an auction.
The central bank sold dollars at a weighted average of 16.9225 pesos per dollar. The central bank offers $200 million whenever the peso slumps more than 1 percent from the previous day’s fix rate. It sells another $200 million every day without a minimum price trigger.
The bank already sold $123 million in an earlier auction on Friday. The peso went on to hit another record low of 16.9525 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)