Peso falls to lowest level vs. dollar in more than four months

Mexico’s beleaguered peso fell to its lowest level since February on Tuesday June 13, weakening to below the 19 peso per dollar level as jitters over fears Britain may vote next week to leave the European Union hurt the Mexican currency.

Traders were also cautious ahead of a U.S. Federal Reserve meeting this week, with an oil price slump also biting. The peso reached as low as 19.025 per dollar, but later pared losses, to trade down 0.87 percent at 18.998 pesos per dollar.

In bank branches, the US dollar stood at 19.30 in Banco del Bajio, while Monex BanRegio was selling at 19.25 pesos. Other institutions such as Banamex, BBVA Bancomer, Santander and Banorte were selling in the range of 19.05 to 19.14 pesos per US dollar.

In Mexico City International Airport exchange centers, the average sale price was 19.11 pesos per dollar and was bought at 17.72 pesos. The highest price of dollar sale was 19.15 pesos, while for purchase the lowest cost was 17.70 pesos.

The Bank of Mexico reported that the exchange rate for Tuesday was 18.7915 pesos per US dollar. At the close of Monday’s session, the peso ended with a loss of 1.09 percent, trading around 18.83 pesos.

According to the UBS Financial Group, the spot exchange rate would see levels of up to 19.25 pesos until the end of the third quarter, which would mean peso levels above 19.50 in the retail market.