# Mexico Peso Sinks on Banxico Plan to Trim Currency Hedge Program - Bloomberg

> Mexico's peso sank after Banxico said it will reduce a currency hedge program starting in September, with about $7.5 billion of outstanding positions. The move signals the peso's rally may have gone too far.

- Date: 2023-08-31 · published 2023-08-31T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/34794-mexico-peso-sinks-on-banxico-plan-to-trim-currency-hedge-program-bloomberg
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Currency moves in Mexico affect the purchasing power of Mexican feed importers buying US corn and soymeal; a weaker peso modestly raises their costs.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2023-08-31/mexico-peso-sinks-as-central-bank-cuts-currency-hedge-program

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.