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Mexico's peso dips amid fears of fiscal cliff in US

Thursday, November 15, 2012

Mexico’s peso fell for a sixth day amid mounting concern that politicians in Washington won’t be able to reach a budget agreement, damping growth in the Latin American country’s biggest trading partner.

Investors are waiting to see if Congress will act to avoid $607 billion in automatic spending cuts and tax increases scheduled to take effect starting in January.

“Markets continue with uncertainty,” Mario Copca, a currency strategist at Metanalisis SA, said in Mexico City. “Obama wasn’t able to stop it.”

Source: Bloomberg