Mexico's peso pares losses on dollar auction

MEXICO CITY, Oct 10 (Reuters) - Mexico's peso pared steep losses on Friday after the central bank stepped into the fray to announce it would sell off $3 billion, throwing its biggest punch yet in a recent fight to save the currency from collapsing.

The peso MXN= MEX01 gained ground back to 13.05 per dollar after having slid as low as 13.57 earlier. The peso was still 3.88 percent down. (Reporting by Michael O'Boyle; Editing by James Dalgleish)