Wednesday saw the Mexican peso slip to the world's reserve currency while worries abounded for the economy of Germany, the euro zone's biggest market, according to Dow Jones Newswires.
Stocks also lost value alongside Latin America's most traded currency amid data stating Germany's economy contracted during the fourth quarter of last year. This past November saw Spanish industrial output drop 7 percent when compared with the same month during the year prior, causing additional chills for euro zone economic prospects.
Analyst Juan Carlos Alderete with Banorte-Ixe told Dow Jones Newswires that investors continue to very cautiously eye Europe and the likelihood of a recession in the region is climbing.
November 2011 also saw weaker-than-forecast industrial production in Mexico, calling attention to the state of the global economy. Mexico's monetary unit has lost about 15 percent of its value to the greenback since August 2011, which is attributable to damages caused by the sovereign debt crisis.
Despite the peso's poor performance on Wednesday, the monetary unit gained the most in one week during the prior trading session, according to Bloomberg. European leaders committing to redouble efforts to challenge the debt crisis encouraged the performance of the peso on Tuesday.
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