Mexico peso slumps to record low

Mexico's peso tumbled to a record low on Thursday as concerns about global growth weighed on riskier assets around the world. The peso shed more than 1 percent to 17.3165 per dollar, its weakest since the currency was floated in the 1990s, before bouncing back to trade around 17.23 pesos per dollar, or 0.6 percent weaker than a day earlier.
Mexican policymakers had increased a dollar sales program in July to support the peso. That program is set to expire at the end of the month, but analysts expect it will soon be extended. The central bank sells $200 million a day to the market and offers $200 million more when the peso weakens by 1 percent from the previous day's fix rate. Mexico's central bank held borrowing costs steady on Monday, flagging tame inflation, but signalled it is prepared to raise rates if the peso's losses hit consumer prices. So far there has been little impact on prices, and data later on Thursday is expected to show the pace of inflation cooled to a fresh record low in early September.