Mexico's currency on Friday stumbled to a new all-time low, pressured by concerns about the fate of Banamex, one of the country's largest banks, after the U.S. government agreed to raise its stake in its troubled parent firm, Citigroup Inc.
Across the region, equities were mixed but still on track to post losses for the week and the month.
Mexico's currency pierced through the psychological level of 15 pesos per U.S. dollar, reaching a low of 15.217 after the U.S. agreed to raise its stake in troubled bank Citigroup Inc. (C) to 36%.
Citigroup owns Banamex, Mexico's second-largest bank measured by asset. Market players are watching for word that Citi may have to give up a portion or all of Banamex. Mexican law prohibits banks in the country to be run by any entity that is owned by a foreign government or sovereign wealth fund.
"The officials in Mexico are still trying to figure out a solution," said Nick Chamie, global head of emerging markets research at RBC Capital Markets.
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