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April 21, 2020, 3:18 p.m. EDT

Peso lower as Banco de Mexico delivers surprise rate cut and rolls out billions in stimulus in latest reaction to coronavirus

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By Mark DeCambre

Mexico's central bank, the Banco de Mexico, cut its key interest rate by half-a-percentage point on Tuesday to 6%. Policy makers in Mexico also rolled out a more than $30 billion stimulus package to "foster an orderly behavior of financial markets, strengthen the credit channels and provide liquidity for the sound development of the financial system," according to a statement by the five-member governing board, which voted unanimously in Tuesday's policy action. At last check, the U.S. dollar bought 24.4573 Mexican pesos /zigman2/quotes/210561814/realtime/sampled USDMXN +1.2978% , up 1.7% in Tuesday afternoon action. Meanwhile, the iShares MSCI Mexico ETF /zigman2/quotes/203022585/composite EWW -1.71% was down 3.2% in late-Tuesday trade, along with declines for the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.88% and the S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.12% . In addition to the COVID-19 pandemic, Mexixo, a major oil producer, has been facing headwinds from the collapse in crude-oil markets /zigman2/quotes/211629951/delayed CL.1 +0.02% lately.

/zigman2/quotes/210561814/realtime/sampled
US : Tullett Prebon
21.1369
+0.2708 +1.2978%
Volume: 0.0000
Sept. 18, 2020 4:59p
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/zigman2/quotes/203022585/composite
US : U.S.: NYSE Arca
$ 33.35
-0.58 -1.71%
Volume: 3.16M
Sept. 18, 2020 4:00p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,657.42
-244.56 -0.88%
Volume: 703.89M
Sept. 18, 2020 5:15p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,319.47
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p
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/zigman2/quotes/211629951/delayed
US : U.S.: Nymex
$ 40.97
+0.01 +0.02%
Volume: 73,755
Sept. 18, 2020 4:59p
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