Mexico auctions currency hedges to combat peso volatility

MEXICO CITY: Mexico's currency commission said the Mexican central bank would hold two auctions of currency hedges each worth $250 million later on Tuesday as financial authorities step up efforts to combat volatility in the peso exchange rate.

The peso, which fell against the dollar at the end of last week due to concerns over inflation and the potential impact on Mexico of US corporate tax cuts, rose by more than 0.7 percent against the dollar after the announcement.