Mexico peso sinks to new low against dollar

MEXICO CITY, October 22, 2008 (AFP) – Mexico’s peso changed hands at 13.74 to the dollar at the end of trading Wednesday, a new record low, despite billions of dollars injected onto the market by the central bank in recent weeks.

The peso closed Tuesday at 13.13 to the dollar.

Mexico’s central bank began selling off dollar reserves on October 9 in a bid to stabilize the currency and has carried out almost daily auctions since then.

The bank sold off 400 million more dollars on Wednesday, raising the total cost of its intervention to more than 11 billion dollars, or about 15 percent of its total reserves.

Meanwhile, the Mexican stock exchange closed down 7.01 percent on Wednesday, as stock markets fell around the globe. The leading indicator of the Bolsa Mexicana de Valores was down 1,415.93 points to 18,787.34.