Mexico's peso weakens for 7th day in a row as COVID fears flare

  • 11/26/2021
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MEXICO CITY, Nov 26 (Reuters) - Mexico"s peso currency depreciated versus the U.S. dollar for the seventh session in a row on Friday, as concerns a new variant of the coronavirus could slow down the recovery of the global economy prompted a wave of risk aversion. The peso was trading 1.77% weaker at 21.9400 per dollar at 2:55 P.M. (2055 GMT), after paring back some of its losses. In earlier trading, the peso fell by as much as 2.75% to 22.1510 per dollar, its weakest level since Sept. 30, 2020. So far in 2021, the peso has lost more than 10%. The discovery of a new coronavirus variant, named Omicron, triggered global alarm on Friday as countries rushed to suspend travel from southern Africa and stock markets on both sides of the Atlantic suffered their biggest falls in more than a year.The most worrying thing about the new strain at the moment is how little we know about it, with early indications that it could be more problematic than Delta. The biggest fear is that it is resistant to vaccines," said Craig Erlam, OANDA market analyst. "Without a doubt, we will know more in the coming days and weeks, but for now, fear of the unknown will weigh heavily over the weekend and could last until next week," Erlam added.

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