Mexico's peso tumbled to a record low on Thursday as concerns about global growth weighed on riskier assets around the world.
The peso shed more than 1 percent to 17.3165 per dollar, its weakest since the currency was floated in the 1990s, before bouncing back to trade around
17.23 pesos per dollar, or 0.6 percent weaker than a day earlier.
Mexican policymakers had increased a dollar sales program in July to support the peso. That program is set to expire at the end of the month, but
analysts expect it will soon be extended.
The central bank sells $200 million a day to the market and offers $200 million more when the peso weakens by 1 percent from the previous day's fix
rate.
Mexico's central bank held borrowing costs steady on Monday, flagging tame inflation, but signaled it is prepared to raise rates if the peso's losses
hit consumer prices.
So far there has been little impact on prices, and data later on Thursday is expected to show the pace of inflation cooled to a fresh record
low in early September.
