Mexican peso dives again, falls past 15.4 to the dollar

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The Mexican peso has plunged to new lows against the dollar today as global investors again rush for safety -- which still means the greenback, despite our own horrid economy.

The peso was trading at 15.43 per dollar for large transactions between banks, compared with 15.25 on Friday and 14.5 two weeks ago. Retail buyers and sellers would be quoted different rates, but the trend is the same: more peso weakness.

The Mexican currency has collapsed from an exchange rate of 10 to the dollar in August, and now is at its cheapest point since it was reconfigured in the early 1990s.

The crumbling U.S. economy has slammed Mexico’s exports and dried up foreign demand for pesos. It also hurts that Mexican workers in the U.S. are sending less money home.

The peso’s 33% plunge over the last six months is the worst performance among the world’s major currencies, according to Bloomberg News data.

The Bank of Mexico has spent more than $18 billion of its foreign reserves since October in an attempt to halt the peso’s slump, according to Bloomberg. The central bank bought $400 million more worth of pesos today.

For Americans who still have money to spend, the sinking peso should make Mexico more of a bargain. Ditto for the country’s exports.

But stories like this one from Cancun aren’t likely to help the tourist trade.

Mexico’s stock market is down 4% today and nearly 24% year to date, a bit worse than the 22% drop in the U.S. Standard & Poor’s 500 index.

Including the peso’s slide, however, the Mexican market is down this year 31.6% measured in dollars.

-- Tom Petruno