Mexico finmin says any FX intervention would be rules-based

MEXICO CITY, March 21 Thu Mar 21, 2013 11:51am EDT

MEXICO CITY, March 21 (Reuters) - Mexican finance minister Luis Videgaray on Thursday said his country will continue with its flexible exchange rate and that any intervention would be rules-based.

Mexico's peso hit its strongest levels in more than 1-1/2 years this week. Mexico has eschewed the direct intervention and capital controls that other emerging-market countries have used to tame currency gains.

Investors are watching to see if Mexico will reinstate a more market-friendly, rules-based mechanism of auctioning dollar "put" options, which could show authorities are growing uncomfortable with the pace of peso gains.

Videgaray was speaking at an event hosted by U.S. news agency Bloomberg in Mexico City.

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