The Mexican peso lost value to the U.S. dollar on Wednesday, closing three consecutive sessions of strong performances as a consequence of Germany indicating it opposes bailout fund mergers, according to Bloomberg.
As Europe's most vibrant economic power, Germany's preferences hold large amounts of weight. The nation will not approve of two bailout funds being combined to fight the sovereign debt scourge, which pulled down the value of higher-yielding currencies like the dollar.
Latin America's most traded currency has not had the most enjoyable of years. Its value is down 8.7 percent thus far in 2011 and it has lost 13 percent of its value during the past six months to isolate itself as Latin America's most poorly performing moneypiece.
The sovereign debt scourge has been heavy on the peso, particularly during this past August, Dow Jones Newswires reports. But not since May 2009 has the peso touched as low a value than what it struck in November.
But despite the lackluster performance, RBS currency strategist Flavia Cattan-Naslausky authored a research note stating the bank is bullish on the monetary unit of Mexico.
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