Mexico peso sinks on expectations of Fed withdrawal
MEXICO CITY, July 5
MEXICO CITY, July 5 (Reuters) - Mexico's peso slumped on Friday by the most in more than two weeks after a strong U.S. jobs report backed expectations that the Federal Reserve will trim its bond purchases later this year.
The peso shed 1.83 percent to 13.15 per dollar.
While strong jobs data bodes well for Mexican exports, the prospect of the withdrawal of U.S. monetary stimulus is pushing investors to now dump emerging market assets across the board.
Easy U.S. monetary policy in recent years had fueled big flows into riskier assets around the globe and Mexico was a top destination.
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