Peso Slumps to Record Low Amid US Interest Rate Hike

The Mexican peso plummeted on Friday morning to its lowest level in months following the US Federal Reserve's decision to raise interest rates. The Fed's benchmark rate now sits at a range of 3.75% to 4%, up from 3.50% to 3.75% since December.

The peso's value against the dollar fell to 17.32, down nearly 6 centavos from Thursday's close of 17.1706. Market analysts projected a trading range of between 17.08 to 17.28 pesos per dollar for Friday's session.

Gabriela Siller, director of Financial Analysis at Banco BASE, attributed the peso's decline directly to the Fed's decision and the possibility of another rate hike before the end of the year.