The Mexican peso fell to a record low of 17.25 to the dollar Monday amid a broad selloff in emerging-markets currencies. The Mexican currency recovered slightly in recent trade to 17.10 to the dollar, but many strategists expected it to go lower as a broad selloff in emerging-markets currencies continues. Emerging-markets currencies have been weakening since China devalued the yuan two weeks ago, a move that reignited worries about slowing growth in that country. The selloff Monday was driven by a sharp plunge in Chinese stocks, which compounded worries about Chinese growth. Many emerging-markets economies, including Mexico, rely on Chinese companies to buy the commodities they export.
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