MEXICO CITY, Nov 13 (Reuters) - Mexico’s peso market is operating with sufficient liquidity and in an orderly manner, Finance Minister Luis Videgaray said on Thursday.
The peso on Thursday traded near a 2-1/2 year low hit earlier this month. Mexico has refrained from market interventions used by other emerging economies to shore up local currencies.
Videgaray also said that Mexico’s central bank had room to raise interest rates from their current record low of 3 percent once the U.S. Federal Reserve begins to tighten borrowing costs.
“It is a fact that they will raise (interest rates in the United States) ... the bank (of Mexico) has space ... it is expected that (the central bank) could decide to make the corresponding adjustment,” he told local radio. (Reporting by Tomas Sarmiento)