October 25, 2017 / 1:48 PM / in a month

Mexico boosts forex hedge auction amounts, lifts peso

MEXICO CITY, Oct 25 (Reuters) - Mexico’s currency commission said on Wednesday it will raise the amount of dollars auctioned in foreign currency hedges following a period of market volatility that has dragged down the peso to six months lows against the dollar.

In a statement issued by the central bank, the commission said it would raise the amount regularly auctioned from a pool of $20 billion set aside for the purpose in February.

So far Mexico has auctioned $1 billion in hedges from the pool in lots of $200 million. It will now offer another $4 bilion through Dec. 6. in larger amounts, starting with an auction of $1 billion on Thursday, the commission said.

The peso rose by more than 1 percent against the dollar after the announcement. (Reporting by Veronica Gomez)

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