Mexico’s peso falls to lowest level since 2000

Thursday June 27, 2002

MEXICO CITY — Mexico’s currency fell to its lowest level since 2000 on Wednesday, ending a two-year stretch of unaccustomed strength that had some Mexicans calling it “the super peso.” 

Some analysts said the fall of the U.S. dollar against other currencies may have hurt the peso, given Mexico’s dependence on the U.S. economy. 

“We are seeing full correlation with the U.S. dollar decline against the euro,” said Dolores Garcia, currency analyst at local financial group BBVA-Bancomer. 

In Mexico City, banking leader Banamex quoted the peso closing at a midrate of 10 per dollar, significantly weaker from 9.8850 at the close Tuesday. It began sliding from around 9 pesos per dollar in mid-April after the central bank eased its monetary policy. 

Bank of Mexico Governor Guillermo Ortiz said on Tuesday that market turbulence in South America also has hit his country’s currency.