The Mexican peso, the most traded of Latin America's monetary units and the moneypiece of one of the region's two most rapidly developing economies, fell to its lowest value in one week of trading in response to the leader of Greece announcing on Tuesday he will yield to the will of the people, according to Bloomberg.
Prime Minister George Papandreou announced Tuesday morning that a referendum will indicate whether the Aegean nation will accept or decline the next tranche of international bailout aid. The second bailout package since June 2010 will help the nation avoid defaulting on loan obligations, which analysts and traders fear would cause havoc to global financial markets.
On Tuesday morning, the monetary unit dropped 2.4 percent as compared to its closing value on Monday.
Currency strategist Win Thin with Brown Brothers Harriman told Bloomberg that the ripples of the tumult inevitably would reach Mexico.
Prior to Tuesday, the most recent lowest value of the peso was on October 21.
October saw the peso climb 4 percent in value when compared with the U.S. dollar, which is the globe's reserve currency, according to Dow Jones Newswires. Mexico and Brazil host the two most rapidly developing economies in Latin America.
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