Mexican peso hits historic low against the US dollar

MarketsAssociated Press

The Mexican peso has established a historic low against the dollar for a second consecutive day amid expectations of interest rate hikes in the United States.

According to the central bank, the peso closed Tuesday with an interbank rate of 15.62 per dollar, down .72 percent from a day earlier when it closed at 15.51.

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Both days beat the previous low of 15.49 established on March 9, 2009.

Analysts have said the peso faces pressure from speculation that interest rates will soon rise in the U.S. with the improving economy, creating more demand for dollars in Mexico.

Last week, the Bank of Mexico auctioned $200 million to slow the peso's fall. The bank announced in December that it would use the mechanism when the peso dropped at least 1.5 percent.