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News (Media Awareness Project) - Wire: Mexico Peso Hit BY Jitters and Speculation
Title:Wire: Mexico Peso Hit BY Jitters and Speculation
Published On:1997-03-15
Fetched On:2008-09-08 21:10:57
The Mexican peso opened sharply weaker across the board on
Monday under heavy demand for dollars in a market gripped
by panic and speculation, traders said.

The benchmark 48hour peso and its 24hour stablemate
opened 10.4 and 9.5 centavos weaker, respectively, at
8.03/8.05 and 8.02/8.04 per dollar.

Sameday peso contracts meanwhile opened 5.5 centavos
weaker at 8.00/8.02 per dollar. "The market is under great
pressure. Skittish dealers want to cover some dollar shorts
even though they had no reason to go on a panicbuying
spree again," a trader said.

"It could settle down again in a bit, if dealers calm
down that is," he added.

Traders said they had expected a calmer market on Monday
after the U.S. government certified Mexico as an ally in
the war on drugs on Friday.

"I thought things would be quiet after the certification
process. Many dealers put demand (for dollars) down to the
uncertainty that generated," another dealer said.

"Now we can see it was just a pretext to speculate," he
added.

Dealers situated support for the 48hour peso at 8.08
per dollar. (( Alexis Quiones, Mexico City newsroom +525
7289555))
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